Introducing the Seafarer Overseas Value Fund
|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.
Paul Espinosa, Lead Manager
Andrew Foster, Co-Manager
Seafarer Overseas Growth and Income Fund Portfolio Review – First Quarter 2016
May 2016 – In his latest portfolio review, Andrew Foster discusses the volatile “V-shaped” performance of the market. While the Seafarer Overseas Growth and Income Fund and the benchmark index both produced gains for the quarter, they did so only after China’s markets first dragged both sharply lower, and after Brazil subsequently pushed both higher. Next, Andrew addresses the rationale behind the Fund’s allocation to Brazil, and how it is changing in light of current events. He concludes by discussing the twin forces that are most likely to shape emerging markets over the next 12 to 24 months: falling interest rates versus sluggish growth.
Letter to Shareholders – Semi-annual Report
November 2015 – In his latest address to shareholders, Andrew Foster discusses the challenging environment that impacted both the Seafarer Overseas Growth and Income Fund and the benchmark index over the summer. He cites two factors that weighed on performance: currency losses (led by the Brazilian Real) and a sharp correction in Chinese stocks. Andrew then addresses an important, albeit contentious topic: whether the emerging market asset class is “dead,” as suggested by some analysts. He reviews the main criticisms that surround the category, and then offers his own view on the future of the asset class. Andrew concludes by discussing some of the latest developments at Seafarer Capital Partners, the firm that advises the Fund.
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.