Emerging-Market Investing -- How the Pros Do It

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

Photograph by Prashanth Vishwanathan/Bloomberg

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A Cultural Edge

Being a "cultural insider" shapes the strategy of Ajay Krishnan, a native of India who manages the Wasatch Emerging India Fund (WAINX). Indians' affinity for herbal products for toiletries and cosmetics led him to invest in a company that specializes in them, rather than the synthetic products made by Western companies. As a way to play India's housing shortage, he prefers home finance firms to property developers, because he knows firsthand how corrupt and opaque that real estate market can be. He avoids power companies because large projects get "mired in litigation."

Read the full special report.