Global investors have failed to pay attention to these important emerging market tips

Fidelity Emerging Markets co-portfolio manager Chris Tennant selects three emerging market favorites

Fidelity Emerging Markets Limited (FEML) uses a wide range of tools, including the capacity to expand gross exposure, engage in both long and short stock positions, and use options to manage risk and produce extra revenue.

We find overlooked businesses in a variety of industries and geographical areas by searching the market-cap spectrum for ideas and utilizing our top-notch team of international analysts.

We are particularly enthusiastic about these three stocks.

A Latin American steal on emerging markets.

The holding company for Banco Inter, a Brazilian digital bank and super-app that has begun to grow significantly, is Inter and Co. (Nasdaq: INTR). Banks like Inter, which have robust funding dynamics and have not yet attained their full potential market share, stand to gain from additional fragmentation in Brazil's retail banking industry. With a price-to-book ratio of about 1 to 3, it is a prime example of a successful Latin American company whose share price has been lowered due to a lackluster outlook.

Although Brazil's interest rate and fiscal conditions have gotten worse, the country's overall economic outlook is better, with GDP growth strong, credit quality favorable, and unemployment at ten-year lows. There will not be much of an effect on Inters fundamentals from higher rates. Given a tight labor market, we anticipate that net interest margins will continue to grow and that the cost of risk will stay low. All of this gives Inter a favorable environment and a solid foundation with a promising future for profitability.

Buenaventura (NYSE: BVN) is a copper and gold mining company based in Peru. Since reforms allow investors to access their pensions early, local pension funds have sold stocks to finance significant outflows, which has hurt the share price. This, however, masks a solid foundation for the organization, which has produced improved guidance and solid operational performancesomething that is comparatively uncommon in the mining industry.

Additionally, we believe that Buenaventura mines two of the most robust commodities. We have a special place for copper because of its appealing supply-demand dynamics, which are supported by the energy transition that uses a lot of copper and a very low supply outlook. Due to its strong pipeline of development assets, Buenaventura is one of the few mining companies that can boost copper production in the face of a growing supply/demand imbalance. Additionally, we believe that gold has a promising future. Over the coming decades, it ought to gain as central banks keep converting their foreign exchange reserves into gold. As a top-tier producer, Buenaventura stands to gain from a positive outlook for both metals.

Let's go.

In China, Full Truck Alliance (NYSE: YMM) operates as a digital truck broker. Given the fragmented nature of the Chinese trucking market and the fact that the majority of truckers run their own independent businesses, FTA should succeed as it overtakes offline truck brokers by providing more efficient and cheaper logistics.

Since the take ratethe percentage of money that FTAs keep from the transactions they facilitateis currently low in comparison to the offline model and commission is a negligible expense for truckers, we also see strong potential for it to grow.

With 25% of FTA's market value in cash, we believe there is room for the company to increase shareholder payouts in the years to come. The company's price/earnings (p/e) ratio is 18, which is a desirable multiple for a monopoly-holding undervalued company.