Pursuing Lasting Progress in Emerging Markets

Seafarer Overseas Growth and Income Fund Portfolio Review – Second Quarter 2016

July 2016 – In his latest review of the Fund, Andrew Foster notes that the emerging markets exhibited a degree of stability that has been lacking during the past several years, even as macro events upset other markets worldwide. Andrew also discusses new holdings in the Fund, as well as one notable exit. He concludes by urging investors to re-examine their presumptions regarding the stability of Europe and the outlook for emerging market currencies.

Portfolio Review

Introducing the Seafarer Overseas Value Fund

Investor Class SFVLX
Institutional Class SIVLX
Inception Date May 31, 2016


The Fund seeks to produce a minimum long-term rate of return by investing in developing country securities priced at a discount to their intrinsic value.

Portfolio Management

Paul Espinosa, Lead Manager
Andrew Foster, Co-Manager

Introduction to the Value Fund

Paul Espinosa defines seven sources of value in emerging markets that may represent viable opportunities for long-term investments.

Letter to Shareholders – Annual Report

May 2016 – In the Annual Report letter, Andrew Foster reviews the Fund’s performance over the past year. Andrew explains how in the first half of the fiscal year, a “mini-bubble” in Chinese stocks popped, and dragged the Fund lower. However, in the second half of the year, a politically driven rally in Brazil’s currency and shares offset some of the Fund’s losses. Yet Andrew notes with frustration that, despite the second half recovery, the Fund finished the year with material losses, though its performance since inception is positive. Andrew concludes by reflecting on the future of Seafarer Capital Partners, touching upon the firm’s plans for scale, strategies, team and culture.

Letter to Shareholders

Field Notes – Moscow

Fourth Quarter 2015 – Despite a serious financial crisis, a number of Russian companies are planning and investing with a long-term horizon in mind. View the Field Notes.

Field Notes

News and Commentary

Market Commentary High Yield Bonds in the Emerging Markets

Kate Jaquet examines corporate bond opportunities in the emerging markets, comparing the credit quality and valuation of emerging market versus U.S. high yield bonds. View the video.

Seafarer Overseas Growth and Income Fund Barron’s: The Three Best Emerging Markets Funds

Barron’s offers its views on three emerging market mutual funds, including the Seafarer Overseas Growth and Income Fund. View the article.