In a recent Forbes article, Blackrock’s Emerging Markets portfolio manager and marketer Jeff Shen was interviewed and said the following: 
“We believe emerging markets will remain the fuel for world growth, consumption and wealth creation over the next decade and beyond.”

“Going back to the turn of the millennium, investing in emerging markets was more about the individual countries an investor chose. It’s different now. These countries have become more like the developed markets in the sense that it’s not about choosing a specific country or a specific sector. It’s about going deeper, doing your homework and choosing individual companies. Take Brazil as an example. Once unstable, following the new presidency of Lula da Silva in 2004, the country dramatically turned the page, gaining political and economic stability that was not present earlier. But even though Brazil has shown only average GDP growth, it has experienced high market capitalization growth.”
Our comment: first of all, one would assume this fund marketer, I mean fund manager, is somewhat biased, after all he manages Blackrock’s BLSAX. But let’s say he is not biased and has been saying (and believing in) this same fallacy for two years now… so let’s take a look at how he would have done if he put his money where his mouth is:

Here we compare the last 6 months of performance of another similar Blackrock fund (in green) and S&P500; (in blue). 
Other articles we have posted here in the past also show how the BRIC stocks underperformed almost all asset classes for the last year or two. At least Mr. Shen’s fund is a “long/short”, different than most “long-only”. Anyway, let’s keep our eyes open and see how it performs in the next year or so…
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