Emerging markets are almost certain to outperform the US over the longer term, the firm said.
Emerging-market stocks have gained 16% this year excluding China.
The central bank policies in developing economies are luring investors to local bonds.
Man Group Plc says the recent rally in emerging markets wasn't justified by economic fundamentals.
Man Group Plc says it is expecting a selloff within the next two months.
Stocks in emerging markets are set to be this decade's winners, the firm says.
About 10% of dollar-denominated sovereign debt is at a high risk of default, one portfolio manager says.
The impact of a default could ripple across pension funds, endowments and foundations.
Russian dollar bonds were hammered this week on concern the invasion of Ukraine would incur sweeping sanctions.
Stocks and bonds from Russia descended into freefall and activity was all but frozen in some corners of the market.