Unleashing the Global Investing Tiger: The Inspiring Story of Lilia Clemente, the Wonder Woman of Wall Street
In honor of Women’s Month, we’re shining a spotlight on Lilia Clemente, a remarkable woman and hero of progress who has made significant contributions to both global investing and human flourishing.
Since the start of her career, Lilia Clemente has championed global investing as the key to mitigating risk and maximizing returns. Through her company, Clemente Capital, which established offices in New York City, Beijing, Hong Kong, Manila, Seoul, and Tokyo, she actively sought promising ventures across over 30 markets. As a global strategist, Lilia played a pivotal role in guiding investment decisions for various clients, including public and private pension funds, individual accounts, and more.
An outspoken feminist, Lilia credits her success to what she called the “three G’s”: God, genes, and grunt work. Despite being dubbed the “Philippine Tigress” for her rapid pace, she was renowned for her use of charm over abrasiveness in pursuing profitable investments worldwide.
“I just love the investment business because, irrespective of race and gender, people respect you for your performance.”
Lilia Calderon Clemente, a dynamo described by Asiaweek as the “Wonder Woman of Wall Street,” born on February 21, 1941, in Manila, Philippines, comes from a notable family. Her father, José Calderon, a mining company owner and respected lawyer, played a pivotal role in shaping the country’s constitutions in 1973 and 1987.
When Lilia turned 10, she exhibited unusual but promising signs of investing interest. She surprised her father by requesting shares of stock instead of cake and presents for her birthday. He granted her wish by giving her shares in his mining company. This sparked her fascination with precious metals. She started paying attention to the factors influencing global gold, silver, and copper prices. She even visited her father’s mines to observe how ores were traded.
Lilia’s mother, Belen Farbos Calderon, was a multifaceted figure, teaching psychology at the University of the Philippines, serving as governor of Nueva Vizcaya province, and earning the distinction of being the first woman to secure a seat on the old Manila Stock Exchange.
“My mother was a real role model. I thought it was natural for women to go into business and politics.”
Lilia, the eldest of seven siblings, completed her business administration degree at the University of the Philippines in 1960. She ventured to the U.S. to pursue further studies in economics and international trade at the University of Chicago. She earned her master’s degree in economics and an advanced business degree in 1962.
In 1964, in Manila, she married Leopoldo Clemente, who himself had earned a master’s degree in business administration from Northwestern University in Chicago. Beyond being life partners, they also joined forces in business. Leo provided a calm, introverted counterbalance to Lilia’s dynamic energy.
In 1966, Lilia kicked off her career as an investment analyst at CNA Financial Corporation in Chicago, focusing on industries like metals, steel, retailing, and consumer goods for three years. By 1969, she was in charge of overseeing a portfolio worth US$300 million, consisting of steel company stocks and copper futures.
In 1969, Lilia and Leo moved to New York City. Lilia made history by becoming the youngest and first female director of investment research and assistant treasurer at the Ford Foundation. Over the next seven years, she managed the foundation’s research team of 14 analysts and spearheaded the globalization of its US$3 billion portfolio by investing US$150 million, mostly in the fast-rising Japanese market.
“I was only a 28-year-old kid, and was sitting with Henry Ford and all these brilliant minds.”
In 1976, Lilia embarked on a new journey, founding Clemente Capital with Leo with just US$25,000 of her personal savings. Starting with modest resources, the business operated out of a small office on Park Avenue in New York City with only one secretary, a used typewriter, and rented furniture. Initially, the focus was on economic and business consulting, particularly in the Asia-Pacific region. She took on consulting roles for her former employer, the Ford Foundation, and various organizations, such as Capital Research and the Southern California Edison Pension Fund. Additionally, she managed portfolios for clients like Jesuit priests and nuns, handling funds amounting to US$5 million.
By 1981, Lilia was gaining attention from the Asian Wall Street Journal for her success in pinpointing some of the world’s most promising markets.
“Being a pioneer in emerging markets is one of the highlights. And by doing this, I have made my investors happy. I give them 22% returns.”
Lilia’s breakthrough came in 1983, when she secured a contract to provide global investment management services to Mitchell Hutchins, the asset management arm of investment bank Paine Webber. Leading the charge, she played a key role in launching the firm’s successful venture into global investing through the Paine Webber Atlas Fund. Within two years, she expanded the fund from US$66 million to US$206 million, securing its top position among all global funds. By 1986, the fund had soared to US$300 million, establishing itself as the most sought-after global fund in the market.
In 1986, Clemente Capital revamped its operations to concentrate on global money management. This shift led to the introduction and public listing of two closed-end mutual funds on the New York Stock Exchange: the Clemente Global Growth Fund and the First Philippine Fund.
In 1987, Lilia offered shares of the Clemente Global Growth Fund to her faithful Japanese friends and investors, as well as to the public, with Ladenburg Thalmann as the main underwriter. Six million shares were sold at US$10 each. The fund raised US$60 million and targeted investments in small and medium-sized companies located throughout the world.
From 1987 to 2000, over the span of 13 years, the Clemente Global Growth Fund’s market price surged by 1,572%, averaging a remarkable growth of 24.2% each year. Starting at $10 in 1987, it climbed to $167.20 by the end of 2000. This impressive growth occurred despite a significant stock market crash in 1987 and an attempted takeover of the fund by corporate raider T. Boone Pickens’ son in 1989.
In 2001, investment bank Bear Stearns acquired the Clemente Global Growth Fund and changed its name to the Cornerstone Strategic Value Fund, which is still being traded today but with less than stellar results.
In November 1989, Lilia offered shares of the First Philippine Fund to the public, with Paine Webber as the main underwriter. Filipino-American bankers, Wall Street professionals, and investors were thrilled and proud. Full-page announcements and articles, including endorsements from the Philippine president, appeared in the Wall Street Journal and other financial publications, sparking widespread interest in investing in the Philippines’ promising future. 7.8 million shares were sold at $12 each. The fund raised at least US$93.6 million and targeted investments primarily in Philippine companies.
In December, however, as Lilia traveled to Manila to review the First Philippine Fund’s investments, her visit coincided with the most violent coup attempt against the government. During the three-day ordeal, Lilia was confined to her hotel room, surrounded by the sounds of gunfire and witnessing buildings in flames. As a result, she promptly halted further fund investments until the failed coup and its aftermath were resolved. Luckily, Lilia had wisely invested most of the fund’s assets in U.S. Treasury bonds. As a result, the fund only suffered a 13% market value loss in 1991.
Despite the setback, the First Philippine Fund showed impressive performance over the following five years, from 1991 to 1996. Its net assets surged by 156%, averaging 20.7% growth annually, rising from US$93 million in 1991 to US$238 million in 1996, outperforming the Philippine market.
First Philippine Fund Net Assets:
1991: US$93 million
1992: US$130 million
1993: US$133 million
1994: US$208 million
1995: US$232 million
1996: US$238 million
Additionally, the First Philippine Fund’s market value soared by 125%, averaging 17.6% growth per year, increasing from US$7.50 per share in 1991 to US$16.88 per share in 1996.
First Philippine Fund Market Value Per Share:
1991: US$7.50
1992: US$11.50
1993: US$13.00
1994: US$18.25
1995: US$16.88
1996: US$16.88
The First Philippine Fund earned the top spot in closed-end fund performance according to Lipper Analytical Services and received a prestigious four-star rating from fund rating firm Morningstar.
Over the next seven years, however, from 1996 to 2003, despite Lilia’s management efforts, the performance of the First Philippine Fund was heavily impacted by the significant political, economic, and currency risks associated with an emerging economy and region. During this period, the fund’s net assets plummeted by 89%, averaging a decline of 27.1% annually, dropping from US$238 million in 1996 to US$26 million in 2003.
First Philippine Fund Net Assets:
1996: US$238 million
1997: US$187 million
1998: US$73 million
1999: US$109 million
2000: US$59 million
2001: US$42 million
2002: US$33 million
2003: US$26 million
Similarly, the First Philippine Fund’s market value decreased by 84.6%, averaging a decline of 23.5% per year, falling from US$16.88 per share in 1996 to US$2.60 per share in 2003.
First Philippine Fund Market Value Per Share:
1996: US$16.88
1997: US$13.75
1998: US$5.75
1999: US$8.63
2000: US$4.06
2001: US$3.19
2002: US$2.84
2003: US$2.60
The First Philippine Fund had weathered a tumultuous period in Philippine history, marked by major coup attempts, earthquakes, typhoons, volcanic eruptions, changes in leadership with four different presidents, the 1997 Asian financial crisis, currency devaluations, mall bombings, power outages, political rebellions, tourist abductions by Islamic terrorists, and a global economic slowdown. Lilia faced significant investment challenges from 1997 to 2003, with the effects of the Asian financial crisis, significant downturns in world markets, and overall negative investor sentiment. Despite these volatile events and market fluctuations over the fund’s fourteen years, Lilia managed to pay out US$66 million in dividends and lose less than the Philippine market.
During a special shareholder meeting held on June 11, 2003, the First Philippine Fund’s shareholders agreed to liquidate and dissolve the fund. Subsequently, the fund’s shares were removed from the New York Stock Exchange on June 18, 2003.
Nevertheless, two of Lilia’s major successes happened back in the spring of 1990, when she outperformed 178 other fund managers to secure the management of the California State Pension Fund and the New York City Pension Fund. Following these victories, she wrote her autobiography titled “Growing Up in World Street,” which was published in Japan.
In 1992, Lilia launched the HK$550 million Cathay Clemente Fund on the Hong Kong Stock Exchange. It was China’s first private equity fund, focusing on investments in emerging Chinese companies. To further support business endeavors in China, she founded an office for the Asian Securities Industry Institute in Beijing to train China’s up-and-coming securities professionals.
In 1994, Lilia arranged for the public listing of engine manufacturer, hospitality operator, and property developer China Yuchai International on the New York Stock Exchange. The company’s stock is still being traded to this day, with a market value of US$356 million.
Lilia has been deeply passionate about various causes, including social value investing, empowering women, supporting millennial inheritors, promoting children’s education, addressing environmental concerns, and advocating for immigrants worldwide. Throughout her career, Lilia was deeply involved in various community organizations and foundations, especially those focused on Asian-American issues. Together with Leo, she established a scholarship fund aimed at supporting talented Filipino students in their U.S. college endeavors. Additionally, she served as a board member of the Securities Industry Association (SIA).
In 1994, Lilia committed US$5 million to enhance the telecommunications network in southern Mindanao, Philippines. The funding was sourced from the Philippine Strategic Investment Fund, a private equity fund she managed in partnership with the Development Bank of the Philippines. This initiative was among the numerous other funds she started and managed, which include the Clemente Korea Emerging Growth Fund, which traded on the London Stock Exchange, the Freedom Global Fund, the Freedom Global Income Plus Fund, and the Sentinel Global Fund.
With her keen understanding of economic trends and her knack for identifying emerging markets, Lilia revolutionized how investors viewed and approached these often-neglected opportunities. By directing investments into developing nations, she not only uplifted living standards and economic prospects in these regions but also facilitated their integration into the global market. As borders once deemed impenetrable began to blur, her firm flourished despite a few setbacks, managing a combined portfolio that, according to reports, exceeded $7.5 billion at the firm’s peak. With operations spanning over 15 countries, 25 employees, and conducted in over 15 languages, the growth and success of Clemente Capital were a testament to her remarkable vision, tenacity, and global impact.
“You know the poem ‘The Road Less Traveled?’ I always try to take that road.”
In one of the last known articles about Lilia, published by Women’s World Banking in 2015, she mentioned that she was shifting her focus away from Wall Street. “I’m less involved in the business now. I’m exploring other avenues,” she stated. While senior employees took over daily management at Clemente Capital, Lilia remained engaged by writing investment briefs on emerging markets and exploring investment opportunities globally. However, her main interest had shifted towards impact investment, aiming for “profit with purpose.” She was actively involved in running a foundation that supported agricultural producers, particularly coconut farmers in the Philippines, by providing them with knowledge, technology, and capital.
Since 2015, there has been limited information available about Lilia and Clemente Capital, leaving their current whereabouts and activities shrouded in mystery. Maybe she’s enjoying her retirement in her cozy New Jersey cottage, where she spends her time gardening, writing poetry, or reading. Or perhaps she’s relaxing in her home in Miami Beach. I like to imagine that wherever she is, she’s out there exploring the world for hidden investment gems. Who knows, she might even be on the verge of launching her next investment fund, ready to seize the opportunity.
There’s a small hint, though. Lilia’s husband Leo’s LinkedIn profile indicates that he’s been a co-founder of Clemente Advisors Family Office in New York City since 2018. Could Lilia be the other co-founder, managing their family’s investments together? We can only speculate. But I’d like to imagine they are happily doing so.