Pursuing Lasting Progress in Emerging Markets

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.

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.

Portfolio Review

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.

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

Seafarer Overseas Value Fund News Release – Launch of the Seafarer Overseas Value Fund

Seafarer launched the Seafarer Overseas Value Fund on May 31, 2016. The Fund applies a value discipline to emerging markets, where Seafarer estimates discounts to intrinsic worth are prevalent and compelling. Though distinct from Seafarer's Growth and Income strategy, the new Value strategy uses the same bottom-up, fundamental research process that is a hallmark of Seafarer’s philosophy. Seafarer believes the Value strategy has the potential to capitalize on long-term, structural changes in the emerging markets. View the news release.

MoneyLife: Interview with Andrew Foster

In an interview with MoneyLife’s Chuck Jaffe, Andrew Foster discusses the qualities that distinguish an emerging market. Andrew asserts that emerging markets are, by definition, beset by financial shocks, economic fragility, and governance shortcomings. While such dysfunctions beget unwelcome volatility, they also provide an opportunity to make basic improvements and progress, which can lead to sustainable growth. Listen to the interview.