Gramercy Funds Bets on Riskier EM in Search of Outsized Returns

Gramercy Funds Managementsaid it’s willing to weather tumult in emerging markets as liquidity concerns and policy uncertainties echo across regions in pursuit of significant upside over the next 12 to 24 months, with potential for double-digit returns.

Active management is key, said Robert Koenigsberger, founder of the Greenwich, Connecticut-based investment management firm. It’s why Gramercy snapped up the debt of Chinese property developer Country Garden at roughly eight cents on the dollar last year to see it now trading around 70 cents.

Last quarter China “blinked,” said Koenigsberger, not only on its Covid strategy but on its economic ...