PCP Management (EM Small Cap)

The fund invests in publicly traded equities across emerging and frontier markets with market capitalizations typically below $3 billion. This includes companies listed in Asia, Latin America, Eastern Europe, the Middle East, and Africa. The manager focuses on businesses that are too small to be included in standard EM benchmarks or to attract meaningful coverage from large-cap institutional mandates.

The strategy is high-conviction and typically holds between 30 and 50 positions. Positions are sized based on the manager's assessment of the discount to intrinsic value and the quality of the underlying business, rather than benchmark weightings. The manager is willing to take meaningful active weights when the fundamental case warrants it.

Idea generation is bottom-up and research-intensive. The investment team relies on proprietary screening, company visits, local-language regulatory filings, and direct engagement with management teams. Because sell-side analyst coverage is sparse in the EM small-cap space, the firm must build its own mosaic of primary-source information rather than relying on broker research.

The manager takes a patient, multi-year approach to positions. The strategy does not trade around short-term earnings prints or macro noise. The investment thesis is built on a company's ability to compound earnings and close the valuation gap over a period of years, not quarters. Portfolio turnover is expected to be low relative to broader EM equity strategies.

The core strategy is long-only equity without recourse to structural leverage. The firm may use currency hedging or limited derivatives for risk management purposes, but the primary return driver is stock selection, not top-down macro bets or complex financial engineering.