Emerging equities remain rich in return opportunity, in our view. But as their recent whiplash behavior illustrates, capitalizing on this potential will require far greater selectivity than it did in the past. The recent selloff snapped a winning streak that had propelled the MSCI Emerging Markets Index up more than 11% through the end of April, far outpacing a flat S&P 500 performance. Still, the index remains well below its early 2011 levels, leaving most investors underweight and making this asset class one of the less crowded corners of the global equities market.