Latest news with #MobiusEmergingOpportunitiesFund
Time of India
15-05-2025
- Business
- Time of India
India top market for me, but regulatory red tape holding it back: Mark Mobius
Veteran emerging-markets investor Mark Mobius on Thursday reaffirmed his bullish stance on Indian equities , calling the country his 'top market' despite heightened geopolitical tensions with Pakistan. However, he warned that bureaucratic red tape is slowing foreign investor access, saying regulatory delays have held back his new fund's deployment in the country. In a post on microblogging site X (formerly Twitter), Mobius reiterated his long-held view that market timing is futile. 'People often ask how I time the market. The simple answer is, I don't,' he wrote. 'Trying to guess which way the wind will blow tomorrow is a fool's game. Markets rise and fall for reasons that don't always make sense. Those who spend their time predicting daily market swings tend to spend a lot of time being wrong.' Mobius linked his latest blog post titled "Avoiding the Fool's Game" in his X post, in which the Mobius Capital Partners co-founder said that his Mobius Emerging Opportunities Fund had been holding 95% of its assets in cash just two weeks ago, but that figure has now dropped to 60% as the fund has started redeploying capital. 'That's just the nature of this business. One moment you're waiting, the next you find something worth buying,' Mobius said. India outlook remains firm despite tensions Mobius, who has been investing in developing economies for more than three decades, played down the impact of fresh friction between India and Pakistan on markets, calling such events historically inconsequential to long-term fundamentals. 'These two countries have had a long and complicated history, and the latest round of friction, while serious, isn't new,' he said. 'A ceasefire has been announced, which should help ease concerns in the short term. But in my experience, these tensions rarely have a lasting/significant impact on the market itself.' Instead, Mobius identified regulatory inefficiencies as the more serious headwind for investors. 'Since our fund is new, we've found it slow and difficult to get proper access to the Indian market,' he said. 'The paperwork alone has held us back for months. If India wants to attract more long-term capital, simplifying these processes would go a long way.' Focus on fundamentals, not headlines While Mobius said the macro picture continues to matter, citing lingering uncertainties in the U.S.–China trade relationship, he urged investors not to get 'caught up in news headlines.' 'For the U.S.–China trade relationship, things may look more stable on the surface now that some agreements have been reached. But implementation is what really matters and non-tariff barriers will likely remain a sticking point,' he noted. The veteran investor cautioned that market volatility is likely to persist in the near term. 'So I do expect markets to be choppy for a while,' he said. Still, he encouraged investors to stay focused on company fundamentals: 'Do your homework and stay focused on searching for good businesses with strong fundamentals. That's really all that matters when it comes to investing.' Mobius also highlighted mid-cap stocks as an area of particular interest for his team. 'They're not always on the radar of big institutional investors, and that's where we often find value.' 'I refuse to play a fool's game' Mobius's blog post ended with a photo of him being mock-threatened by a Jack Sparrow impersonator at the Atlantis hotel in The Bahamas. In the image, the costumed pirate playfully grabs Mobius by the collar while pointing a fake rifle. The caption reads: 'I refuse to play a fool's game (photo taken at the Atlantis hotel in The Bahamas).' The emerging-markets investor's remarks come at a time when global market sentiment remains fragile. After an initial rally earlier this week on optimism over a U.S.–China trade truce and high-profile investment deals from the Middle East during former President Donald Trump's Gulf tour, equities lost steam by Thursday. MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.15%, while U.S. equity futures also edged lower ahead of key data releases. Investors were awaiting U.S. retail sales figures and earnings from Walmart for insight into consumer sentiment, as well as a speech by Federal Reserve Chair Jerome Powell for cues on the interest rate outlook. Also read | Mark Mobius says his funds hold 95% in cash on trade war risks
Economic Times
12-05-2025
- Business
- Economic Times
Mark Mobius still bullish on Indian banks, eyes defence and pharma sectors
"If he sees the markets going down, he will make some changes in order to allow the market to move up again. So, it is not all over. There is going to be more and more back and forth between China and the US," says Mark Mobius, Chairman, Mobius Emerging Opportunities Fund. ADVERTISEMENT What is your view on the current situation? Mark Mobius: Well, the situation is interesting. First of all, I have to congratulate India for the conclusion of this situation with Pakistan. But I think India has got to keep an eye on this situation and continue to prepare for a repeat of this kind of situation. So, I am glad to see that the Indian military is ready and able and it is important that they keep a very close eye out on the situation. This will go on for quite some time, I believe, until there is a massive reform in Pakistan and that will take time as we go forward. As regards to the situation with China and the US, you must remember that Trump plays the markets like a fiddle. If he sees the markets going down, he will make some changes in order to allow the market to move up again. So, it is not all over. There is going to be more and more back and forth between China and the US. Must remember at the end of the day what Xi Jinping wants is Taiwan and that is the big-big issue overhanging the US and China and that is not going to go away soon. Hopefully, they will reach some kind of an agreement, but I believe that the big problem with China as we have seen in the past is that there have been many agreements, but the question is does China adhere to those agreements? Will they follow up on those agreements? That is where the US has got to be very careful and, of course, I am sure they are well aware of this problem. So, yes, the markets will do well if the agreement is reached, but it is not over. It is going to take a long time to see the ultimate conclusion of the situation. When I spoke to you last, you were slightly tentative about Indian market valuations. Are you convinced now? I mean, India has been one of your large positions. Are you looking at increasing the exposure now? Mark Mobius: Yes, I will. Well, we have a new fund and we want to get into the Indian market, but the problem is, it is up to three months now we have been working to try to get into the Indian market. The paperwork and bureaucracy is incredible. It is very important for India to loosen up on these regulations to make it easy for people to invest particularly now that you have this opportunity to take business away from China and so it is very important that India opens up more and more. ADVERTISEMENT But yes, India and as soon as we are able to, we will be investing in Indian stocks. We have got a number of ideas, the defence sector is very interesting. Pharmaceuticals is going to be interesting now in view of what Trump said because now US pharmaceutical companies will have to look for lower price pharmaceuticals that India can supply, so that is going to be very interesting going forward and, of course, we always like the IT sector in India, that is going to be a very good sector to be active in going forward. ADVERTISEMENT Your holdings were APL Apollo, Persistent, Vodafone, and if I am not wrong, Waaree Renewables, right? Mark Mobius: Yes. These are all great stocks, but we are looking at other stocks. Cannot say which ones yet, but we are looking at a number of new opportunities in India. As you know, India's tech sector is deep and there are many companies that have great opportunities. So, we are looking at all those. ADVERTISEMENT You mentioned that Indian IT companies are great companies. While these are great companies, cash rich companies, strong buybacks, but there is no growth. Growth is sub-10%. Would you still buy these stocks? Mark Mobius: No. First, we are looking for growth, that is the reason why we look beyond those stocks to look at companies that just are coming up, that are now at the bottom or now just starting and have great growth prospects. Of course, we want stocks that have a good return on capital but most important is growth, earnings per share growth and that is something we want to focus on. ADVERTISEMENT Why is that China despite attractive valuations is not getting what was called as easy trade? US money will move out of US. It will go to emerging markets. Within that India is expensive, it will go to China. Why is that easy trade easy trade not panning out? Mark Mobius: The problem is that a lot of US investors have been focusing on the US market. They see great opportunities, the US particularly now with the reforms that Trump is instituting. However, after the US, India is number one. There is great-great opportunities in India provided that the Indian market is more open and that there is a cut down on bureaucracy, very important. In order to get, for example, semiconductors going in a big way in India, there has to be incredible deregulation to allow people to bring in equipment, to allow them to bring in components, etc, etc. These are essential for the production of semiconductors. How much more do you think this comeback trade in US equities will also extend itself because most of the US markets including the Dow and Nasdaq, they pretty much have retraced what they had lost after the tariff selloff. So, even though tariffs are at play and US economy decisively will slow down in second half, US markets have been quite resilient. Mark Mobius: Yes, well, do not forget we are about halfway up from the bottom. We have got another 50% to go to reach where we were before, that is number one. Number two, you must remember now with the Trump policies, the whole situation in America is changing. We now have to start focusing on companies that are domestically oriented, that are producing domestically and not dependent upon imports, that is a big-big change. So, you cannot be looking at the stocks that were doing well last year anymore. You got to look at new stocks that you have not noticed before because they were not on the radar. People were not looking at them because they were just domestic producers, so that is going to be a big change in the US going forward. What about Indian banks? Historically, you liked some of the Indian banks and I remember you had a large exposure to HDFC Bank and some of the other private banks. Are you looking at increasing your exposure there even after the recent runup? Mark Mobius: Yes, we are looking at the banks. But before the banks as I said defence. The defence sector, the IT sector, pharmaceutical sector, those will come first before we look at the banks, but yes, there are some opportunities in banking.
CNBC
05-05-2025
- Business
- CNBC
India to benefit at the expense of China amid tariffs: Mark Mobius
Mark Mobius, Chairman of Mobius Emerging Opportunities Fund, shares his bullish view on India, Brazil, Vietnam and Taiwan in emerging markets, as well as Japanese trading houses in the long run.
CNBC
28-04-2025
- Business
- CNBC
India will benefit from U.S.-China trade war, not as much opportunity for LatAm: Mark Mobius
Mark Mobius, Mobius Emerging Opportunities Fund chairman, joins 'Closing Bell Overtime' to talk emerging markets and international opportunities.
Time of India
21-04-2025
- Business
- Time of India
India in a good spot, China in big trouble: Mark Mobius warns market likely to get even shakier on Trump's tariff moves
Mark Mobius said that India needs to swiftly reduce bureaucratic hurdles in investment and trade processes. India is not decoupled from Donald Trump's tariff risks but it is in a good spot to take over the supply chain from China, says Mark Mobius , chairman of Mobius Emerging Opportunities Fund. The veteran investor believes that India needs to act quickly to take advantage of the global supply chain shift away from China. In an interview with ET, Mobius said that India needs to swiftly reduce bureaucratic hurdles in investment and trade processes. 'India in a very good spot' Asked whether India can remain protected from the trade war, Mobius said, 'Everybody is in the same soup. Nobody can generally escape. India will be entangled more in the global trade war because it will become a major supplier going forward.' 'India is in a very good spot. It is in a position to take over the supply chain from China. But India has got to move quickly to liberalise the system for investment and also liberalise its trade system,' Mobius said. Also Read | Elon Musk's Tesla eyes India to diversify its global supply chain; in talks with CG Semi, Micron According to Mobius, for companies to engage in exports, they need seamless access to import machinery and essential components. Currently, the complex bureaucratic procedures in India make this process challenging for businesses, he opines. Simplifying these administrative processes would attract international corporations like Apple to establish manufacturing facilities and commence production operations in India, he added. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo Global Stock Market & US Economy Outlook Regarding market uncertainties stemming from Donald Trump's inconsistent tariff policies, he said that the situation remains complex. 'He (Trump) has got a pile of trade deals to sort out before his 90-day timeout on some tariffs runs out. And let's face it, when you are negotiating, you have to give something to get something. People who have worked on trade deals in the past say this kind of rushed timeline brings all sorts of complications and roadblocks. So, brace yourself, the market is likely to get even shakier,' he warned. Regarding the US economic outlook, Mobius said that a recession appears likely, particularly due to insufficient money supply growth. However, this downturn is expected to be relatively brief, lasting approximately one quarter. The Trump administration will likely implement measures to prevent a prolonged economic decline, he said. Also Read | Apple looks to manufacture more iPhones in India as Trump's tariffs hit China harder: Report 'China in big trouble' According to Mobius, China is in 'big trouble'. He is of the view that China faces significant economic challenges at present. The nation has developed remarkable infrastructure throughout the country, yet finds itself vulnerable due to its heavy reliance on US trade relations, he cautioned. 'They are trying to get around it by transhipping to other countries like Vietnam and even India. The US realises that and is cracking down on China's behaviour. Internally, China also has its own set of challenges, particularly between China and Taiwan, adding to the uncertainty. We are cautious about China because of the trade war, and the geopolitical tensions only make the outlook more uncertain,' he said. Stay informed with the latest business news, updates on bank holidays and public holidays . Master Value & Valuation with ET! Learn to invest smartly & decode financials. Limited seats at 33% off – Enroll now!
