Best Emerging-Market Stock Pickers Buy Drugmakers to Retail

The only three emerging-market stock pickers who avoided losing money for clients in the worst first-half rout since 1998 say now’s the time to buy Philippine retailers, Chinese Internet companies and Indian drugmakers.

Lewis Kaufman, whose Thornburg Developing World Fund rose 3.2 percent, the most among U.S.-domiciled emerging-market mutual funds overseeing at least $100 million, says Manila-based Puregold Price Club Inc. will benefit from 20 percent sales growth. CNI Charter Emerging Markets Fund’s Anindya Chatterjee boosted his position in Shenzhen, China-based Tencent Holdings Ltd. as first-quarter profit rose 37 percent. David Semple has been buying Indian pharmaceutical shares for the Van Eck Emerging Markets Fund as the rupee’s tumble boosts exports.