Why Emerging Markets?

Silva Capital believes that emerging market investments will offer attractive risk/return opportunities versus the developed world for the foreseeable future. Here we outline the fundamental case for EM outperformance.

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Currency Ranking Methodology

Understanding that the key long-term movers of foreign exchange markets are macroeconomics and public policy, Silva Capital has structured its investment process around thoroughgoing, fundamental evaluations of the countries whose currencies we trade. Through our investigations, we aim to select those variables which hold the greatest explanatory power of FX trends, to normalize these metrics for comparison, and to weight our findings in a way which reflects the current market environment. At end, we utilize our findings to produce a ranked basket of investable currencies. Here we detail this process.

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In August 2013, Silva Capital announced a collaboration with Banorte-Ixe Funds to launch the Fixed Income investment vehicle, NTESEM.

>> Click here for more information on this joint venture.



Hedge Funds Shorting Mexico Peso Means More Emerging-Market Pain: November 20, 2015

There will be no reprieve from the swoon in emerging-market currencies as far as hedge funds are concerned. And to get a sense of how bad it might get, look no further than the Mexico peso, the most-traded currency in developing nations and the market’s proxy for risk.

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This Emerging Nation Bond Trades Like G-7 Debt. It Pays More Too: October 16, 2015

Not all emerging markets are created equal. Amid extreme swings in developing-country debt from Brazil to South Africa, Mexico’s market for government bonds is enjoying a period of relative tranquility.

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To Hedge Just About Anything, Traders Are Shorting Mexico’s Peso: July 27, 2015

AThe Mexican peso’s virtue as the most-traded currency in emerging markets is also its biggest curse. The peso’s $135 billion in daily trading makes the market so much deeper than for other developing countries that investors use the currency as a general proxy for risk.

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