We Study Billionaires - The Investor’s Podcast Network TIP306: Frontier Investing w/ Kiyan Zandiyeh (Business Podcast)
Jul 19, 2020
Kiyan Zandiyeh, Chief Investment Officer at Sturgeon Capital, shares his expertise in frontier investing. He outlines the critical strategies for navigating these unique markets, detailing how to assess political and currency risks. Zandiyeh highlights Uzbekistan as a particularly intriguing opportunity right now. The discussion also covers boots-on-the-ground research and innovative approaches to understanding local dynamics, making a compelling case for why frontier markets deserve a spot in a diversified portfolio.
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Frontier vs. Emerging Markets
- Frontier markets have below-average private sector participation and low foreign investment.
- Emerging markets are developing, with increasing private sector and foreign investment.
Growth in Developing Markets
- Technological infrastructure improvements accelerate company growth in developing markets.
- Focus on scalable business models with positive unit economics.
Assessing Currency Risk
- Assess currency risk by looking at a country's current account deficit, budget deficit, and external debt.
- Build implicit hedges by favoring companies with hard currency revenues and local currency costs.