A veteran investor says best days are over for hottest emerging stocks

Pockets of opportunity remain in places such as South Korea, where political pressure will push corporate governance changes, and Taiwan, where financial companies will benefit from rising yields

Some of the biggest names in emerging markets may be yesterday’s success stories, at least as far as JO Hambro Capital Management is concerned.

Just look at the numbers: The MSCI Emerging Markets Index jumped more than 45 percent in the two years prior to this one. That means Alibaba and tech peers such as Tencent and Baidu, which make up a big portion of the index, are no longer attractive, said  James Syme, a developing nation specialist who helps oversee London-based Hambro’s $40 billion of investments.

"It’s names like that that make the asset class look expensive," Syme said