Letter to Shareholders – Annual Report
May 2018 – In the Annual Report letter, Andrew Foster states that despite his concerns over China’s increasing centralized government control, the country’s growing economic scale and global prominence mean that it cannot be ignored in an investor’s portfolio. In his view, investors must consider a substantial, structural increase in their exposure to China – through dedicated exposure to a broad array of asset classes. Andrew also notes the Growth and Income Fund’s reduction in operating expenses, consistent with Seafarer’s long-term goals.
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.
Field Notes
The investment team shares its insights from research trips, including recent visits to Bangkok, Beijing, and Hyderabad.
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News and Commentary
Prevailing Winds China’s Investment Numbers Don’t Add Up
– While each release of China’s fixed asset investment numbers generates news headlines, the data should be treated with a healthy dose of skepticism until China completes reforms to its statistical methodology. View the post.
The Prevailing Winds Blog tracks the economic and financial trends shaping the development of China. Learn more.
Field Notes – Bangkok
– Despite continued military rule in Thailand, a handful of Thai companies stand out with growth strategies linked to development projects on the eastern seaboard and overseas expansion. View the field notes.
One Belt, One Road – Many Motives
– China’s Belt and Road initiative is an ambitious vision for global trade, infrastructure development, and diplomacy. The financial scale of this undertaking dwarfs the U.S. Marshall Plan in current dollar terms, but prompts key questions: how will it be funded, and who will pay for it? View the white paper.