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Investment Philosophy 2 1480X565

Investment philosophy

We invest in emerging and frontier markets worldwide. Since our start in 1997 we have strived to be long-term, active and responsible investors and owners.

From the start of East Capital, we have strived to be dedicated, long-term investors. Our investment teams use their extensive knowledge of local markets, fundamental analysis and maintain regular business connections to shape their investment decisions.

Over the years, our teams have engaged with numerous companies, management teams, regulators, governments and fellow investors.

We've consistently refined our approach to sustainability and ESG, ensuring we can provide sustainable investment products to our clients. This has resulted in a unique and proprietary approach, upheld by our investment teams since 1997.

Our ultimate goal remains unchanged: to make better informed investment decisions and enhance the value of our portfolio companies through active ownership, while contributing to the advancement of sustainability in our investment universe.


Frequent and personal meetings with company owners, management teams and policymakers are an integral part of the investment process, providing  us with in-depth local knowledge, access to information and an extensive network. Being on-the-ground is essential in better understanding the local market dynamics, making better-informed investment decisions and monitoring existing holdings.


Diligent research is essential for identifying key performance drivers and correctly assessing risk. We rely on our own research, including risk scenarios and a proprietary ESG analysis, in our investment process.


While we can make some short-term adjustments, we do so without sacrificing the overall long-term focus and the low core turnover of the portfolios. We focus on companies with strong and predictable growth profiles, high and consistent return on equity, high free cash flow and high capital efficiency. Fundamentals matter over time.

Active stock-pickers

We look beyond index composition and invest by conviction on a company by-company basis. Our portfolios typically have a high active share. Our off-benchmark exposure often includes a significant allocation to small and mid-cap companies, which can offer "below radar" and hence reasonably priced exposure to certain sectors benefiting from strong structural demand. We also like frontier markets which are in general both faster-growing and less correlated to the developed world than emerging markets


It is important to keep a clear view on the rapid pace of change and its potential impact on stock prices, especially when it comes to emerging and frontier markets. Central bank decisions, commodity prices, geopolitics and local investor sentiment will all influence stock performance. It is therefore important to keep a look at the drivers beyond the pure fundamentals.


Our fundamental bottom-up research process addresses and integrates investment risks and opportunities associated with relevant and material environmental, social and corporate governance factors. We consider good corporate governance as well as environmentally and socially responsible behaviour to be essential in managing a company with the aim of maximising long-term shareholder values.

Active owners

ESG factors are an important driver of long-term investment returns from both an opportunity and a risk-mitigation perspective. We are enforcing improved ESG standards and strengthening the chain of accountability in portfolio companies through our monitoring capacity and constructive engagement.

Our experience has shown that an engaged and constructive dialogue will more often lead to convincing the company to initiate positive change, while simply exiting the investment achieves nothing. Voting at AGMs/EGMs is another important way for us to communicate our views to the companies and their management.