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.
Seafarer Overseas Value Fund Portfolio Review – Fourth Quarter 2017
January 2018 – In his review of the Value Fund’s fourth quarter performance, Paul Espinosa engages in a nuanced discussion of various Fund holdings in order to explain the role of the Fund within a growth-driven market. He concludes by contemplating the past and future of emerging markets through the lens of China’s 19th National Congress of the Communist Party and the Chinese renminbi.
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.