Some of the largest institutional investors in the world are bullish on emerging markets, believing the beaten-up asset class now offers compelling opportunity.
"We're now at a point where valuations are low, investment management expertise has grown and we should be able to get great stock picking there. I'm excited about the opportunities," Jane Mendillo, president and CEO of $32.7 billion Harvard Management Co., said at the Milken Institute Global Conference in Los Angeles on Wednesday.
Mendillo noted that emerging markets are trading at a 40 percent price-earnings discount to developed ones.
"We like the U.S. but we like emerging markets more," the Harvard endowment manager added.