Investor Spotlight: Driehaus Capital – Investing in Emerging Markets and The Great Pendulum Shift with Howie Schwab, Lead Portfolio Manager for Emerging Markets Growth

“I think it's true everywhere, but data shows it's particularly true in emerging markets, which is that the persistence of risk is generally higher than the persistence of return.” – Howie Schwab

Howie Schwab is the lead portfolio manager for the Emerging Markets Growth strategy at Driehaus Capital. He is also a portfolio manager for the Emerging Markets Small Cap Equity and Emerging Markets Opportunities strategies, and he has also served as co-portfolio manager for the Driehaus International Small Cap Growth strategy. 

For more, explore the transcript of this episode.

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Topics discussed with Howie Schwab

• 00:02:20 – Howie’s background and work at Driehaus Capital
• 00:06:52 – The lure of emerging markets
• 00:12:20 – A behavioral focus in investing
• 00:19:30 – Seeing patterns and avoiding fraud
• 00:24:12 – Researching and publishing market analysis
• 00:43:21 – The state of financial assets today
• 00:49:41 – The future and financial repression
• 00:56:42 – The shift in voting demographics and its economic impact
• 01:02:14 – Advice for investors

Howie Schwab Resources

• Connect with Howie Schwab: LinkedIn
• Richard Driehaus
• Driehaus Capital Management
• Stan Druckenmiller
• Ray Dalio
• Enron
• Michael Mauboussin
• Sino-Forest
• Empirical Research Partners
• Business Roundtable
• ESG
• Warren Buffett
• Congressional Budget Office (CBO)
• Alexandria Ocasio-Cortez
• Elizabeth Warren
• Vanguard
• LTCM

Books Recommended by Howie Schwab

• The Lords of Easy Money: How the Federal Reserve Broke the American Economy by Christopher Leonard

Learn More About This Topic

TED Talks - Emerging Markets

This list of TED talks covers everything from Brexit to the next manufacturing revolution.

Stan Druckenmiller’s speech at Lost Tree Club

Howie references this speech with great insight into an investor who is flexible, talks about his mistakes, and acknowledges that liquidity is what drives the market.

Millennials and Gen Z are a growing force in investing

This piece in Fortune expands on Howie and Daniels discussion of young investors, their political views, and investing in today’s changing market.

Should You Invest In Emerging Markets?

This piece from Investopedia gives a quick overview of the risk involved in investing in emerging markets.

Sino-Forest Corporation

Howie discusses seeing patterns and avoiding fraud when investing in emerging markets, including this case involving the Sino-Forest Corporation.