In a post last Tuesday I noted that legendary investor Jim Rogers recently visited Sri Lanka. Now, one of his colleagues has been spotted in the South Asian island country. From the Daily Mirror (Sri Lanka) today:

In what could be a major boost to Sri Lanka’s profile globally, Dr. Mark Mobius, the iconic emerging markets guru, is in town to get a fresh update on prospects for further investments in the country following the end of the 30-year-old conflict.

The news of Franklin Templeton Investments Executive Chairman Dr. Mobius’ visit, which has been under wraps, is yet to reach markets and some of the big players in the private sector.

However, when contacted by the Daily Mirror FT, Central Bank Governor Nivard Cabraal confirmed that he had lunch with Dr. Mobius but declined to reveal details.

The Daily Mirror FT learns that the visit – facilitated by investment specialist Marianne Page – includes either luncheon or formal meetings with CEOs or senior management teams of select blue chips. Analysts expect premier blue chip and number one market cap entity John Keells Holdings and Aitken Spence to be among companies with which Dr. Mobius would meet up. A team comprising representatives from his Indian and Far East funds are accompanying him in the Lankan tour.

Sources who are privy to some of the meetings already held said that Dr. Mobius was “very upbeat” about Sri Lanka.

It is speculated that his funds have already invested nearly US$ 1 billion in Government securities.

Some estimated that he made these investments in fixed income securities when rates were over 14% and with the current rates being around 500 basis points, any exits by him would be at a hefty capital gain. It is not sure whether he would opt for that course and divert his gains to equity markets for further investments or whether Dr. Mobius was making the Lankan visit with additional funding earmarked.

Analysts said that he is very likely to increase his exposure to Sri Lanka as the country is by far the best or among top three in the world for equities. Improved macro economic fundamentals including low inflation, interest rate and stable exchange rates are some of the other factors for such a move. This is, of course, apart from the overall positive re-rating of Sri Lanka’s economic growth prospects and attractiveness following the successful defeat of terrorism.

Source:

“Emerging markets guru Mark Mobius in town”
Daily Mirror (Sri Lanka), November 13, 2009

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