GMO's Tina Vandersteel on a "Once-in-a-Generation" Opportunity | #521

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 16 February 2024

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today’s guest is Tina Vandersteel, who is the head of GMO’s Emerging Country Debt team. She’s been with GMO for almost two decades. In today’s episode, we dive into Tina’s teams’ recent piece about what they call a possible “once-in-a-generation opportunity” in emerging market local currency debt. Tina gives a great overview of the emerging market debt asset class and then we dive into the reasons behind her team’s call. She shares why today is reminiscent of 2004 and how she thinks about things like liquidity panics and sanctions risk. And you won’t want to miss her hot take on China. It’s not often you see the words ‘once-in-a-generation’ from a well-respected shop like GMO so I’m excited for you all to listen in. (1:27) - Welcome Tina to the show (2:08) - Overview of emerging market debt (4:27) - What are Brady Bonds? (7:53) - Delving into sovereign debt issues (11:29) - No Stone Unturned (12:58) - The overvalued US dollar (25:00) - China’s place in emerging debt markets (29:33) - Identifying countries at risk of default (37:35) - Highlighting opportunities arising from geopolitical events (42:12) - Tina’s most memorable investment (47:00) - Sharing Tina’s most controversial viewpoint ----- Follow Meb on Twitter, LinkedIn and YouTube For detailed show notes, click here To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com ----- Sponsor: Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here. Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok ----- Interested in sponsoring the show? Email us at [email protected] ----- Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. ----- Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Med Faber Show, where the focus is on helping you grow and preserve your wealth.
0:09.0	Join us as we discuss the craft of investing and uncover new and profitable ideas all to help you grow
0:13.9	wealthier and wiser. Better investing starts here.
0:17.0	Matt Baber is the co-founder and chief investment officer at Cambury Investment Management
0:21.0	due to industry regulations he will not discuss any of Cambry's funds on this podcast.
0:25.1	All opinions expressed by podcast participants are solely their own opinions and do not reflect
0:28.6	the opinion of Cambria Investment Management or its affiliates.
0:31.2	For more information, visit Cambria Investments.
0:33.0	com.
0:34.0	Welcome, welcome everybody.
0:38.0	We got an awesome episode today with another one of the GMO crew.
0:42.0	Our guest is Tina Vandersseel, who's the head of the GMO crew. Our guest is Tina Vandersiel,
0:43.8	who's the head of GMO's emerging country debt team
0:46.4	and she's been there for almost two decades.
0:48.5	In today's episode, we dive into Tina's team
0:50.6	in recent piece about what they call a possible once in a
0:53.9	generation opportunity. I'd love to hear those words in emerging market local
0:58.2	currency debt. Tina gives a great overview of the emerging market debt
1:01.9	asset class and then we dive into
1:03.6	reason behind her team's call. She shares why today is reminiscent of 2004, how she
1:08.9	thinks about things like liquidity panic, sanctions risk, and you won't want to miss her hot take on China.
1:14.1	It's not often you see the words once in a generation from a well respected shop like
	...

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