DM And EM Knowledge Leaders Outperformance Continues To Widen by Bryce Coward, Gavekal Capital
This last week has seen some volatility in markets thanks to China and Greece and as we noted earlier, 54% of EM stocks are in a bear market. Yet, despite heightened volatility in the both the emerging and developed markets, Knowledge Leaders continue to perform well. Over the last year the Gavekal Knowledge Leaders Developed World index – an equally weighted, diversified index of the world’s most innovative DM companies – has outperformed the MSCI World Index by about 6.6%. The Gavekal Knowledge Leaders Emerging Markets index – an equally weighted, diversified index of the world’s most innovative EM companies – has outperformed the MSCI EM index by 4.9%.