Economics & Strategy – Southern/Sub-Saharan Africa Equity Strategy: Second

For a third consecutive year, Deanne Gordon, who works out of Cape Town, South Africa, guides the J.P. Morgan squad to second place. “Their written research is impressive,” attests one money manager. The 14-member group tracks 64 stocks and is selectively bullish. Current South Africa–based favorites include drug manufacturer Aspen Pharmacare Holdings, which has “excellent entrepreneurial management,” the team leader says, and is likely to benefit as the generics industry in emerging markets “continues to enjoy attractive tailwinds.” Rated overweight since January, the stock surged 25.8 percent, from 16,500 rand to 20,750 rand, and outpaced the broad market by 29.9 percentage points, through May. The strategists also like Naspers, a digital and print media outfit, on the belief that “the market is yet to fully appreciate its medium-term growth potential,” she says. They urged clients to overweight the stock in January, at 57,263 rand, and by late May it had bolted 30.1 percent, to 74,513 rand, and bested the broad market by 34.2 percentage points. — Paul Sweeney