Lead-Lag Live Narratives vs Numbers: Brendan Ahern on EM Growth, Dollar Flows, and What Investors Miss
Sep 3, 2025
Brendan Ahern, Chief Investment Officer at KraneShares, shares his insights on separating narratives from data in emerging markets. He reveals how headline returns can obscure strong tech performance and highlights key players like TSMC and Alibaba. Ahern discusses the implications of a weaker dollar on global investments, advocating for a shift towards growth stocks outside of U.S. equities. Listeners will gain valuable strategies for navigating the complexities of emerging markets and optimizing their portfolios.
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U.S. Outperformance Distorts Perception
- U.S. equity dominance over 16 years made many investors abandon diversification.
- Broad non-U indices underperformed largely because U.S. growth stocks led the market.
Sector Mix Masks Emerging Market Gains
- EM headline returns hide large dispersion across sectors and factors.
- EM tech returned far more than broad EM because banks, energy and SOEs dragged overall results.
Extract Growth Beta From EM Indexes
- Do extract the growth factor from broad EM if you want exposure to tech-led returns.
- Avoid buying broad EM blind if you aim for growth-style performance.