Letter to Shareholders – Annual Report
May 2016 – In the Annual Report letter, Andrew Foster reviews the Fund’s performance over the past year. Andrew explains how in the first half of the fiscal year, a “mini-bubble” in Chinese stocks popped, and dragged the Fund lower. However, in the second half of the year, a politically driven rally in Brazil’s currency and shares offset some of the Fund’s losses. Yet Andrew notes with frustration that, despite the second half recovery, the Fund finished the year with material losses, though its performance since inception is positive. Andrew concludes by reflecting on the future of Seafarer Capital Partners, touching upon the firm’s plans for scale, strategies, team and culture.
Introducing the Seafarer Overseas Value Fund
|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.
Paul Espinosa, Lead Manager
Andrew Foster, Co-Manager
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.
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.