Emerging-Market Investing -- How the Pros Do It

By Ben Steverman - 2011-12-09T17:28:30Z

Photograph by Dadang Tri/Getty Images

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Not All Owners Are Equal

"You're going to be a minority shareholder in emerging markets," says Conrad Saldanha, portfolio manager of the Neuberger Berman Emerging Markets Equity Fund. Companies are dominated by governments, the families who founded them or large conglomerates like South Korea's chaebol. It's important to make sure your interests are aligned with those owners. Saldanha decided not to invest in an otherwise attractive Indonesian coal company when he realized its family owners were heavily in debt. "The fear is: Are they going to raid the coffers of the listed company to bail themselves out?"

Read the full special report.