Friction points.

Those obstacles that limit a company’s growth. Like how can retailers serve customers that don’t have credit cards or even bank accounts? How can companies thrive when poor infrastructure prevents products from getting to their customers?

Emerging markets offer ample opportunity. But they’re also very complex environments.

It’s my job to find the companies where there is upside to be made in emerging markets.

I try to find companies that turn these challenges into opportunities. Not only by analyzing the numbers but by going out in the field and meeting management, suppliers, competitors and even interviewing customers.

Everything from pharmaceutical to technology to fashion.

In a number of countries, we see something we want and a click or two later it’s billed to our credit card; and even arrives the next day—with free shipping!

In emerging markets it’s not quite that simple. But it is possible.

One company I found invested early in software and logistics. And created the processes to move items faster and at lower costs than competitors, translating into more sales and profits.

In order to capture value in emerging markets, it’s critical to pick the companies that are actively trying to solve the friction points.

In the end, it's these unique companies with creative business models, strong management teams, and good capital allocation policies that will generate value for our investors.

That’s why I go beyond the numbers.