Cartica Capital: The Active Owner Driving Long-term Value in Emerging Markets
Founded in 2008 by former executives of the International Finance Corporation (IFC), a member of the World Bank Group, Cartica Capital is a majority woman-owned investment firm that specializes in investment management. With its headquarters located at 1775 I street NW Suite 900 Washington, DC 20006, US, Cartica is a registered investment advisor with the SEC. The company's primary focus is on being a concentrated active owner of small- and mid-cap companies in emerging markets, bringing about significant, long-term, and value-enhancing improvements in corporate governance, environmental, and social factors.
Cartica's unique approach to investment management is evident in its active engagement with management teams, boards, and shareholders of the companies in its portfolio. The firm typically holds around 20-30 positions and is frequently among the largest independent shareholders in each. Cartica's investment strategy is three-pronged, focusing on country selection, company selection, and company engagement.
The first prong, country selection, involves identifying countries with favorable macroeconomic fundamentals and attractive market valuations. The second prong, company selection, entails choosing companies with strong competitive advantages, high-quality management teams, and attractive valuations. Finally, the third prong, company engagement, emphasizes active engagement with management teams to drive improvements in governance, environmental, and social factors.
Integral to Cartica's investment approach is a comprehensive evaluation of environmental, social, and governance (ESG) factors. These are fully integrated into each phase of the firm's investment and engagement process through Cartica's proprietary ESG methodology. This methodology ensures that the companies in Cartica's portfolio are not only financially sound but also adhere to high standards of corporate governance, environmental stewardship, and social responsibility.
By actively engaging with the companies in its portfolio and focusing on long-term value creation, Cartica Capital aims to deliver superior risk-adjusted returns for its investors. The firm's deep understanding of emerging market dynamics, expertise in active ownership, and commitment to responsible investing make it a unique player in the world of investment management.
To learn more about Cartica Capital and its investment approach, visit the company's website at http://www.cartica.com.