The California State Teachers’ Retirement System has made a $200 million investment in ABS Global Investments’ ABS Insights Emerging Markets platform.
According to ABS, its $3.7 billion emerging markets platform centers on partnering with local specialists to take advantage of their expertise and understanding of their respective markets. The platform is managed by Guilherme Ribeiro do Valle, also an ABS founding partner.
“By partnering with local specialists with on-the-ground expertise in our stock selection, we’re able to uncover unique names, particularly in the mid and small-cap space, and provide differentiated returns,” Valle said in a statement.
The emerging market strategy is offered as a private fund, collective investment trust, mutual fund or segregated account structure. The platform includes long-short, long-only, and country- and region-specific equity strategies.
The platform’s strategies include its Emerging Markets Long/Short strategy, Long Only strategy, China Long Only strategy, ex-China Long Only strategy and Insights Emerging Markets strategy.
The Emerging Markets Long/Short strategy is designed to provide returns in line with emerging markets equities, but with less risk over a full market cycle. The strategy targets a net exposure of 50% to 75% to market movements.
The Long Only strategy aims to outperform emerging markets equities over a full market cycle, and invests in stocks with all sizes of market capitalizations.
The China Long Only strategy is intended to outperform the greater Chinese equity markets and Taiwan over a full market cycle, while the ex-China Long Only approach is designed to outperform emerging markets outside of China over a full market cycle.
ABS’ Insights Emerging Markets strategy includes a diversified, all-cap core portfolio of approximately 150 to 250 stocks, has exposures to large-, mid- and small-cap stocks, and aims to “produce consistent and differentiated alpha.”
According to ABS, the CalSTRS investment is its first involvement with the $350 billion pension giant.
“We see this as the beginning of a long-term partnership,” Valle said.
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Tags: ABS Global Investments, ABS Insights, California State Teachers’ Retirement System, CalSTRS, Emerging Markets, Emerging Markets strategy, Guilherme Ribeiro do Valle
