Emerging market companies leapfrogging western rivals

Emerging market companies have evolved from low-cost imitators into global innovation leaders, driven by the absence of legacy systems and the necessity to turn strategic constraints into competitive advantages. Firms like PolicyBazaar, Nubank, and Sea demonstrate this shift by leapfrogging traditional infrastructure and adapting to local challenges, such as limited internet connectivity or complex logistics. Investment managers prioritize businesses capable of "multiple act" growth—leveraging initial successes in e-commerce or gaming to expand into fintech, logistics, and beyond. Success in these regions requires long-term conviction, deep on-the-ground research, and the ability to navigate geopolitical and regulatory complexities. By focusing on fundamental business execution rather than short-term macroeconomic volatility, investors identify companies that reorganize resources efficiently to become dominant, world-leading entities in sectors ranging from semiconductors to retail.