The GMO Emerging Markets Illiquid Strategy seeks to generate total return in excess of that of its benchmark, the MSCI Emerging Markets Small Cap Index.
The Strategy is designed to deliver the illiquidity premium, which is related to but not the same as the small cap premium. In addition, the Strategy emphasizes top-down country-sector allocation and value. The Emerging Markets Equity team believes that getting macroeconomic perspectives right in emerging equity markets is most important and that value wins over the long term. The team applies both quantitative and fundamental insights to evaluate countries, sectors, and stocks, using an investment process focused on value and also informed by quality and sentiment inputs.