New York — After emerging-market stocks led global equity markets lower in a brutal 2018, some US-based fund managers are betting that the asset class may have the largest rebound in the new year. It may not look likely at the moment, given that an economic downturn in China prompted iPhone-maker Apple to lower its quarterly revenue forecast on Wednesday for the first time in a decade. Its shares slumped nearly 10% after CEO Tim Cook blamed the US-China trade war and “economic deceleration”, prompting broad sell-offs around the world the following day. Yet fund managers from Westwood Holdings Group, GMO, T Rowe Price and Causeway Capital Management are among those who are betting that emerging-market stocks will post outsized gains in 2019. They cite a combination of compelling valuations and a likely decline in the value of the dollar that will help accelerate economic growth. As China continues to bear the brunt of US President Donald Trump’s focus on trade tariffs, fund managers ...

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