3 Winners and 3 Losers from Emerging-Market Funds' Big Rally

• Emerging market funds outperformed in 2025, benefiting from being 'cheap' and a 'sell America' trade due to trade tensions and a falling dollar.
• Value stocks and 'pure' emerging market funds, particularly those in China, South Korea, and Taiwan, saw strong gains, while India lagged.
• Will Danoff, Fidelity Contrafund's manager, is retiring, leaving behind a legacy of strong performance across various market environments, emphasizing curiosity and continuous learning.

Emerging market funds experienced a significant rally in 2025, marking their best year in a decade, driven by undervaluation, a weakening dollar, and robust growth stories. While the outlook for 2026 remains cautiously optimistic, investors are advised to consider emerging markets as diversifiers due to their inherent volatility. The video also touches on the retirement of legendary Fidelity Contrafund manager Will Danoff, highlighting his successful investment strategies.