Seafarer®

Pursuing Lasting Progress in Emerging Markets

Seafarer Overseas Growth and Income Fund Portfolio Review – Fourth Quarter 2017

February 2018 – In his review of the Growth and Income Fund, Andrew Foster notes that the recent gains in the benchmark index are without much historical precedent, and could imply widespread speculation. Next, he discusses recent changes to the portfolio's holdings, and his attempts to make the Fund's tactical position more defensive at the margin. Andrew concludes by recounting some of the speculative behavior that he has observed among both investors and companies, and warns that investors should re-assess their tolerances for risk, and prepare for near-term volatility.

Portfolio Review

Letter to Shareholders – Semi-annual Report

November 2017 – Andrew Foster offers a personal perspective on recent events in China, within the context of the country’s long-term evolution. Andrew explains that when Xi Jinping assumed the Presidency in 2012, his administration presented a bold plan to undertake economic reform and unlock new growth potential. However, the plan has fallen short over the past five years: reform has largely stalled while Xi consolidated political power. Meanwhile, the economy has remained reliant on excessive credit expansion to stimulate growth. Andrew expresses concern as to whether China will reach its potential.

Letter to Shareholders

News and Commentary

Seafarer Overseas Growth and Income Fund Portfolio Briefing – Fourth Quarter 2017

Daniel Duncan and Andrew Foster discuss the robust growth in emerging markets in the quarter and the year, and how it has been concentrated in a narrow set of sectors and countries. On the topic of China, Andrew asserts that the country's influence and importance in the world have never been greater, even as he is concerned about its long-term evolution. View the video.

Seafarer Overseas Value Fund Portfolio Briefing – Fourth Quarter 2017

Daniel Duncan and Paul Espinosa discuss the plateau of the Value Fund's NAV during the quarter, which Paul attributes to a collection of stock specific developments. Paul explains that when a holding is struggling, he will add to the position if the company's operations are evolving according to plan. He illustrates the Value strategy's focus on IRR (versus target price) using the example of Fund holding Pegas Nonwovens. View the video.

Seafarer Overseas Value Fund A Value Approach to Emerging Markets

Paul Espinosa describes the structural changes that have made it possible to realize a value strategy in emerging markets. He explains how the strategy’s research process is based on Seafarer’s framework of seven distinct sources of value in emerging markets. View the video.