Emerging Equity Bears Turn Into Buyers After BRICs Retreat

The longest losing streak for developing-market equities in more than a decade is turning investors who shunned the stocks a year ago into buyers after valuations fell to the lowest levels since March 2009.

TCW Group Inc.’s Komal Sri-Kumar, who advised purchasing options as insurance against emerging-market declines in October 2010, now recommends shares of consumer companies after inflation slowed in China and central banks in Brazil and Turkey cut interest rates. HSBC Private Bank’s Arjuna Mahendran is adding Chinese stocks with dividend yields of more than 4 percent. Harris Private Bank’s Jack Ablin said he may boost emerging-nation shares to 10 percent of holdings from 3 percent.