Seafarer Overseas Growth and Income Fund Portfolio Review – First Quarter 2018
April 2018 – In his review of the Growth and Income Fund, Andrew Foster notes that though he steered the Fund toward a defensive construction in anticipation of volatility, the Fund failed to dampen the market’s gyrations. Andrew explains that stock-specific events were to blame; he discusses events at one of the Fund’s larger positions, Richter Gedeon, in depth. He concludes with brief observations on the gap between expectations and reality, and the prospect of decoupling.
Seafarer Overseas Value Fund Portfolio Review – First Quarter 2018
April 2018 – In his review of the Value Fund, Paul Espinosa discusses the Fund’s performance against the backdrop of large price swings in the underlying holdings and volatile market conditions. He also examines the impact of changing U.S.-China trade relations on Fund holdings and on emerging markets investing more broadly.
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.
Field Notes
The investment team shares its insights from research trips, including recent visits to Beijing and Hyderabad.
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News and Commentary
Prevailing Winds Forty Years Later: China in a New Era
– The recent China Development Forum celebrated China’s economic achievements, but it also highlighted a large shift occurring across China: the Communist Party’s reassertion of control over the government. View the post.
The Prevailing Winds Blog tracks the economic and financial trends shaping the development of China. Learn more.
Seafarer Overseas Growth and Income Fund Portfolio Briefing – First Quarter 2018
– Daniel Duncan and Andrew Foster discuss the Growth and Income Fund’s performance and the pronounced volatility of emerging markets during the quarter. Andrew notes that the volatility, following sustained outperformance in emerging markets, suggests potentially challenging conditions ahead. View the video.
Seafarer Overseas Value Fund Portfolio Briefing – First Quarter 2018
– Daniel Duncan and Paul Espinosa discuss the top contributors and detractors to Value Fund performance during the quarter. Paul explains that the performance of these holdings was asynchronous to that of the emerging markets index. He concludes by noting that the declines in the index created buying opportunities for the Fund. View the video.