A handful of readers have requested coverage of Everest Capital, a Miami and Singapore-based firm run by Marko Dimitrijevic. We will make an effort to post what we can find on the firm in the coming weeks. For starters, Everest was founded in 1990 and currently manages $1.9 billion, spread across five individual strategies. The firm is best-known for its devotion to studying global macro and emerging markets trends, and then applying a heavy dose of fundamental, bottom-up research to identify opportunities. Of note, the firm prefers to invest across multiple asset classes, diversifying across not only debt and equity securities, but also commodities and currencies.
Earlier this month, the firm released its latest white paper, “The End of Emerging Markets?” In essence, the paper highlights the rapidly leveling playing field between emerging and developed market economies. Pointing to recent improvements in liquidity, corporate governance, volatility, and overall size, the paper makes the case that investors too easily resort to age-old excuses to limit allocations to emerging markets. By making such assumptions, investors could be penalizing themselves, missing out as more and more emerging economies position themselves as legitimate global economic players.
In addition, Everest's CIO, Dimitrijevic, was featured in a November 2 interview in Barron's. In the piece, he touches upon many of the ideas outlined in Everest's latest white paper. Most notably, he presents a compelling case as to why he believes nominal GDP is a misleading measure of economic production. By using U.S. Dollars as a measuring stick, he feels that countries' economic outputs are being over- and underrepresented on the global scale, too-easily distorted by differences in exchange rates and income levels. As a solution, he proposes that GDP be measured according to purchasing power parity, whereby one dollar basically purchases the same bundle of goods and services in all countries. According to Everest's research, such a measurement would show that emerging market economies are responsible for a much larger share of global economic output; in fact, they produce a nearly-equal amount of global economic output as their developed market counterparts. For more on Everest Capital, visit their website.
This article was by Dave Reynolds from HedgeCo.net.
In the future, we're going to be building out quick profile/biography pieces on various hedge funds and their managers in order to provide reference points going forward. In the mean time, here are some of our past in-depth profiles:
- Julian Robertson & Tiger Management
- Lee Ainslie & Maverick Capital
- Bill Ackman & Pershing Square Capital Management
