White Paper – On Value in the Emerging Markets
November 2015 –
Paul Espinosa examines the
universe of value stocks
that lie within the emerging markets.
Rather than rely on basic quantitative measures to distinguish “cheap” stocks from “expensive” ones, Paul defines
seven distinct sources of value
that might represent viable opportunities for long-term, value-oriented investments.
He applies these seven definitions to the securities universe within the emerging markets and discovers a
subset worth $1.4 trillion.
Paul then examines each of the seven categories in detail, studying the challenges and opportunities within each.
He discusses where
value “traps” might lie
– and how best to avoid them.
Paul concludes by noting the opportunity for value in the developing world is
large, diverse, and seemingly untapped
by the global investment industry.
Letter to Shareholders – Semi-annual Report
November 2015 –
In his latest address to shareholders, Andrew Foster discusses the
that impacted both the 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
that surround the category, and then offers his own view on the
future of the asset class.
Andrew concludes by discussing some of the
at Seafarer Capital Partners, the firm that advises the Fund.
Portfolio Review – Third Quarter 2015
October 2015 –
In his latest portfolio review, Andrew Foster examines the
sustained by the Fund during the third quarter.
While the Fund outperformed its benchmark, Andrew highlights how
emerging market currencies
played outsized roles in dragging the Fund lower.
He also notes that despite the currency-induced volatility, he has done
little to alter
the Fund’s construction in recent months, except for the
addition of a corporate bond
Andrew concludes with a discussion of how currency depreciation can create
dislocations between price and value
– especially for
companies with long-lived, high-quality assets
capable of producing U.S. dollar-denominated revenues.
Seafarer Overseas Growth and Income Fund
The Fund seeks to provide long-term capital appreciation
along with some current income; it also seeks to mitigate
adverse volatility in returns.
The Fund invests primarily in the securities of companies located in developing countries. The Fund invests in several asset classes including dividend-paying common stocks, preferred stocks, convertible bonds, and fixed-income securities.