Seafarer®

Pursuing Lasting Progress in Emerging Markets

Seafarer Overseas Growth and Income Fund

Portfolio Review – Second Quarter 2019

Hanoi, Vietnam

Andrew Foster, Paul Espinosa, and Inbok Song discuss Growth and Income Fund holdings that impacted performance in the quarter.  The managers attribute the recent volatility in emerging market equities to two primary factors: first, rapidly shifting sentiments regarding the U.S.-China trade dispute; and second, the unstable estimates of professional analysts regarding the forecast growth in corporate profits in the developing world for 2019.

Portfolio Review
Seafarer Overseas Value Fund

Portfolio Review – Second Quarter 2019

Tbilisi, Georgia

Paul Espinosa attributes the Value Fund’s positive performance to stock-specific factors and highlights two instances of event-driven value realization within the portfolio’s holdings. Amid slowing global growth expectations, Paul notes that the Value strategy aims to generate investment returns from a diversity of factors. While one of the strategy’s seven sources of value is sensitive to changes in growth expectations, the other six sources do not relate directly to growth.

Portfolio Review

Letter to Shareholders – Annual Report

Seoul, South Korea

In the Annual Report letter, Michelle Foster and Nicholas Borst reflect on the three-year anniversary of the Seafarer Overseas Value Fund. The Fund aims to exploit certain long-term structural changes in the developing world – changes that Seafarer believes will force various companies to realize a portion of the value that is embedded in their balance sheets. In addition, Michelle and Nicholas explain that amid ongoing volatility and uncertainties in emerging markets, Seafarer continues to invest in personnel and resources to better serve the Funds.

Letter to Shareholders

News and Commentary

Prevailing Winds

How Exposed Are U.S. Investors to China?

U.S. investors are more exposed to China than the official statistics indicate, but far less exposed than some policymakers and the media may imagine.

How Exposed Are U.S. Investors to China?

Ben Graham Conference – Value in EM Panel

At the Ben Graham VI Annual Conference hosted by CFA Society New York, Paul Espinosa applies Seafarer’s seven distinct sources of value to the securities universe within the emerging markets and concludes that the opportunity for value-oriented investments is significant.

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The Diplomat – Understanding China’s Bond Ratings

In The Diplomat, Seafarer’s Kate Jaquet writes that the arrival of international credit rating agencies in China could draw greater foreign participation to the Chinese bond market.

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Field Notes

Bangkok

Street Food Vendors, Please Satay Away

The Thai military government’s crackdown on street food vendors in Bangkok leaves a sour taste to some.

Bangkok

Seoul

Companies Find Growth Overseas

Facing a competitive domestic market, nimble Korean companies find growth overseas.

Seoul