Most foreigners are very overweight on India, an investment stance that worked in 2014. However in 2015, India has begun to underperform, while China has been on a roll. With most investors underweight on the country, China’s surge is hurting money managers’ performance.
India is no longer the only game in town. In China, one can deploy large pools of capital, the government seems to be writing a put on the market, valuations are not yet over the top and momentum is very strong. It is only a matter of time before money moves, and the India overweight reduces among global emerging market as well as regional managers. The pain associated with remaining short on China is just too much.–wrote Akash Prakash,Amansa Capital
