For the better part of a decade now, emerging market local currency sovereigns have outperformed both U.S. Treasuries and U.S. equities on an unhedged, total-return basis—and done so by over 150%. Economic, political, and demographic data indicate that this past performance is not a historical anomaly, but is instead reflective of a global rebalancing which will trend into the foreseeable future, presenting investors with opportunities as well as risks.
Emerging market debt investments are not to be taken lightly. Their rewards can be great, but they are still inchoate sources of sound and stable alpha. To navigate their risks as well as their possibilities, Silva Capital believes that experience-driven local market fixed income expertise must be wedded to a thoroughgoing understanding of the currencies in which these bonds make payment.
Boasting over 65 years of combined industry experience and market-recognized expertise in the use of emerging market currency options, Silva Capital’s core team brings together precisely this knowledge. Our investment process, focusing on both fixed income analysis and active FX management, results in synergetic decision making that is unique in its depth of market awareness. Our active, discretionary trading approach is underpinned by quantitative modeling and fundamental research and—by its flexibility—allows our managers to outperform in diverse environments. Our expertise in local emerging markets and currency options spreads across our offerings and is accessible through either our investment management products or advisory practice.
