E327: $7B CIO: The Right Way to Invest in Emerging Markets

Mar 18, 2026

Robert Koenigsberger, Founder and CIO of Gramercy and builder of a $7B emerging markets platform, explains why EMs are misunderstood. He discusses favoring structured private credit, planning entries and exits with high conviction, using local teams and collateralized lending like supplier finance, and managing currency risk opportunistically.

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INSIGHT

Liquidity Is Overpriced In EM Allocations

Liquidity is overvalued by many EM allocators who treat EM as a strategic, long-term allocation.
Giving up limited liquidity for structured private credit often delivers ~1000bps extra yield and less downside.

ANECDOTE

Lending To Pemex Suppliers For Mid-Teens Yield

Instead of buying liquid Pemex bonds at ~5–6%, Gramercy lends to Pemex suppliers with correlated receivables plus uncorrelated collateral and earns ~16–17% on 12–18 month loans.
This swaps liquidity for collateralized, higher-yield short-term paper.

ADVICE

Manage Currency Risk Opportunistically

Treat EM currency exposure as opportunistic; hedge when you can achieve target dollar returns with less risk.
For dollar-denominated private credit, lend in dollars or hedge local currency back to dollars to remove unnecessary volatility.

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What if emerging markets aren’t a trap, but most investors just approach them wrong? In this episode, I sit down with Robert Koenigsberger, Founder and CIO of Gramercy, to explore how he has built a $7 billion emerging markets platform by focusing on high conviction, structured private credit, and long-term partnerships. After nearly four decades in emerging markets, Robert has pioneered strategies that capture the upside while managing risk, proving that careful underwriting, local knowledge, and disciplined execution outperform passive index approaches.

Highlights:

Why emerging markets are often misunderstood and mishandled by passive, late-cycle investors
How index investing can mislead with forced exposure to high-risk countries like Argentina or Russia
The importance of “high conviction” and planning multiple entry and exit points to avoid reactive trades
Why structured private credit to suppliers of major companies (e.g., Pemex) can yield 16–17% with collateral
How to manage currency risk opportunistically and avoid unnecessary volatility
Why underwriting people and credit culture is often more important than laws, contracts, or jurisdictions
How Gramercy partners with LPs who already have EM exposure to optimize returns, not convince them to take new risks
The evolution from distressed hedge fund to public credit to private credit to capture structural alpha
How local teams and platform partners in emerging markets provide actionable information that beats what’s visible in global markets
Timeless advice: seek mentorship early and often to accelerate learning and avoid repeating mistakes

Guest Bio:

Robert Koenigsberger is the Founder and Chief Investment Officer of Gramercy, a $7 billion firm focused on emerging markets across debt, private credit, and special situations. Since founding Gramercy in 1998, he has led the firm through multiple market cycles, combining top-down macro insights with bottom-up local expertise to pursue high-conviction, structured opportunities while managing downside risk.

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why Emerging Markets Are Not a “Trap” (0:59) The Biggest Mistake: Treating EM as Yes or No (2:10) Why Index Investing Fails in Emerging Markets (3:14) The 200% vs -95% Dispersion Opportunity (4:08) High Conviction vs Passive Allocations (6:17) Plan the Trade, Trade the Plan (9:58) Why Private Credit Beats Liquid EM Debt (12:05) Why Currency Risk Is Usually Unnecessary (14:17) Getting Paid for Market Failures (21:35) Why People Matter More Than Contracts