32 BARRON’S February 15, 2021
“With the average age [of people] in
these [emerging market] countries
lower than that of the developed
Photograph byNATALIE NACCACHE
Q&A
An Interview With Mark Mobius,
Founder of Mobius Capital Partners
Emerging
Markets
After Covid
P
eripatetic investor Mark Mobius, 84, sees a
strong global economic recovery that should
finally help emerging markets outperform
after a decade lagging behind developed mar-
kets, and despite U.S. tensions with China.
Mobius, once described as the Indiana
Jones of emerging markets, launched Mobius
Capital Partners almost three years ago after retiring
from a multidecade career at Franklin Templeton,
where he ran one of the first emerging market funds.
His new firm, which oversees $220 million in assets,
takes a more concentrated approach to the frontier and
emerging markets he has long invested in, focusing on
roughly 30 companies and actively working to improve
environmental, social, and corporate governance, or
ESG, factors, and culture.
Barron’scaught up with Mobius in Dubai to see how
he’s positioned for a global economic recovery, why he
isn’t worried about a U.S.-China decoupling, and why
he thinks central bankers’ fixation with inflation is mis-
guided. An edited version of our conversation follows.
Barron’s: Emerging markets have lagged behind
the S&P 500 index for about a decade. Why is this
their year to outperform?
Mark Mobius: We’ve had a big run [in emerging mar-
ket stocks], and this will continue. With the average
age [of people] in these countries lower than that of the
developed markets, their recovery [from Covid-19] will
be faster. The vaccine, of course, helps, but more impor-
tant is the psychology. As people begin to feel safe, you’ll
see economic activity pick up very fast.
Technology is also hitting these markets, especially
frontier markets, and that’s driving a lot of this move
toward better asset quality and information. The cur-
rency is also getting stronger in emerging markets
against the dollar, which itself is a positive. But more
By RESHMA KAPADIA