LONDON (Reuters) - Emerging markets investor Mark Mobius plans to raise up to 400 million pounds in a London listing to take advantage of the “phenomenal opportunity” caused by widespread turmoil in the sector.
The impact of rising U.S. interest rates, trade tensions between the United States and China as well as economic ructions in Argentina, Turkey and South Africa have seen currencies and stocks battered in recent weeks.
“We are seeing a phenomenal opportunity, especially in the small and mid-cap sector, across emerging markets, which has suffered quite significantly and de-rated to an extent that we haven’t seen in a long, long time,” said Carlos Hardenberg, partner in Mobius’ Mobius Capital Partners.
“The valuations we are seeing right now are below the 12-year, not only average, but 12-year extremes, being produced by a fairly widespread over-reaction, specifically in the currency markets but also the equity markets,” he told Reuters.
The Mobius Investment Trust is set to list on Oct. 1 and will be the main route for investors to access the strategy offered by Mobius Capital Partners, although certain investors in Europe will be able to invest through a separate fund.
Mobius will invest in a concentrated portfolio of around 20-30 stocks, with an average market capitalisation of $2 billion. That compares to the roughly 70 stocks held by many peers, with an average size of $40 billion, the company said.
Mobius left U.S. investment house Franklin Templeton in January after more than 30 years at the firm, having been hired by Sir John Templeton in 1987 to launch one of the first mutual funds dedicated to developing economies.
Mobius, among the most well-known investors in emerging markets, oversaw around $50 billion in assets under management at Franklin Templeton.
Reporting by Simon Jessop, editing by John O'Donnell and Jason Neely