Why Investor Perth Tolle Thinks Political And Economic Freedom Are Good Market Investments

Most important lessons aren’t learned in the classroom. In 2003, the year after Houston money manager Perth Tolle graduated from Trinity University in San Antonio with a degree in finance, she spent a year in Hong Kong living with her father, reconnecting with her Chinese roots. On a visit to Shanghai, Tolle befriended a woman named Maggie. Both were 23 years old, but her new friend’s dark backstory shocked Tolle. While Tolle had enjoyed a suburban upbringing in Plano, Texas, Maggie lived in the shadows. She had no birth certifi­cate, no school or hospital records and no safety net. To the Chinese government, Maggie didn’t exist. She was one of tens of millions of kids victimized by the Communist Party’s one-child law, in effect from 1980 through 2015. Because her parents already had a son, they concealed her upbringing. “That policy changed the culture of my generation, and the effects of the demographic disaster in China are irreversible,” says Tolle, 42, who was born in Beijing but came to the U.S. at age 9. “I had this realization that freedom made a difference in my life and in the markets.” China is a core holding of most emerging-markets funds, making up 30% of the MSCI Emerging Markets Index, but if you were to peer into the portfolio of Tolle’s Freedom 100 Emer­ging Markets ETF, you wouldn’t find a single Chinese stock. The fund she manages with Havertown, Pennsylvania–based ETF issuer Alpha Architect is still relatively small, but it has grown from $30 million at the beginning of 2021 to $200 million today. It has no investments in Vladi­mir Putin’s Russia either. As a result, year to date MSCI’s emerging-markets index is down 17%, but Tolle’s Freedom fund is off only 7.5%. Think of the Freedom ETF as a close relative of popu­lar ESG funds, but instead of worrying about the environment or corporate governance, Tolle avoids investing in regimes that infringe on personal and economic freedoms. Read the full story on Forbes: https://www.forbes.com/sites/hanktucker/2022/05/24/beat-the-market-by-investing-in-freedom--and-shunning-places-like-russia-and-china/?sh=1589929fa39a Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1 Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes: http://forbes.com Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.

Why Investor Perth Tolle Thinks Political And Economic Freedom Are Good Market Investments


Most important lessons aren’t learned in the classroom. In 2003, the year after Houston money manager Perth Tolle graduated from Trinity University in San Antonio with a degree in finance, she spent a year in Hong Kong living with her father, reconnecting with her Chinese roots. On a visit to Shanghai, Tolle befriended a woman named Maggie. Both were 23 years old, but her new friend’s dark backstory shocked Tolle. While Tolle had enjoyed a suburban upbringing in Plano, Texas, Maggie lived in the shadows. She had no birth certifi­cate, no school or hospital records and no safety net. To the Chinese government, Maggie didn’t exist. She was one of tens of millions of kids victimized by the Communist Party’s one-child law, in effect from 1980 through 2015. Because her parents already had a son, they concealed her upbringing. “That policy changed the culture of my generation, and the effects of the demographic disaster in China are irreversible,” says Tolle, 42, who was born in Beijing but came to the U.S. at age 9. “I had this realization that freedom made a difference in my life and in the markets.” China is a core holding of most emerging-markets funds, making up 30% of the MSCI Emerging Markets Index, but if you were to peer into the portfolio of Tolle’s Freedom 100 Emer­ging Markets ETF, you wouldn’t find a single Chinese stock. The fund she manages with Havertown, Pennsylvania–based ETF issuer Alpha Architect is still relatively small, but it has grown from $30 million at the beginning of 2021 to $200 million today. It has no investments in Vladi­mir Putin’s Russia either. As a result, year to date MSCI’s emerging-markets index is down 17%, but Tolle’s Freedom fund is off only 7.5%. Think of the Freedom ETF as a close relative of popu­lar ESG funds, but instead of worrying about the environment or corporate governance, Tolle avoids investing in regimes that infringe on personal and economic freedoms. Read the full story on Forbes: https://www.forbes.com/sites/hanktucker/2022/05/24/beat-the-market-by-investing-in-freedom--and-shunning-places-like-russia-and-china/?sh=1589929fa39a Subscribe to FORBES: https://www.youtube.com/user/Forbes?sub_confirmation=1 Stay Connected Forbes newsletters: https://newsletters.editorial.forbes.com Forbes on Facebook: http://fb.com/forbes Forbes Video on Twitter: http://www.twitter.com/forbes Forbes Video on Instagram: http://instagram.com/forbes More From Forbes: http://forbes.com Forbes covers the intersection of entrepreneurship, wealth, technology, business and lifestyle with a focus on people and success.