Testimony – China’s Economy: Implications for Investors
– In testimony to the U.S.-China Economic and Security Review Commission, Nicholas Borst discusses the causes of China’s economic slowdown and the risks of local government debt.
Testimony – China’s Current EconomyPortfolio Review –
– Andrew Foster explains that as EM stocks traded sideways, the Growth and Income Fund produced gains from disparate underlying holdings such as XP, Inc., Richter Gedeon, and CD Projekt. While weak demand constrains the Chinese economy, he suggests that no investor should dismiss China altogether, as it has entrepreneurial strength and the sovereign authority to enact reform.
Portfolio ReviewPortfolio Review –
– Brent Clayton discusses how idiosyncratic company-specific developments helped the Value Fund outpace its benchmark, and he describes the competitive positioning of a new Middle East holding. Brent explains how the Fund remains focused on corporate fundamentals as it navigates an uncertain macroeconomic environment.
Portfolio ReviewPortfolio Briefing – Second Quarter 2023
– Andrew Foster reports that the Growth and Income Fund’s performance was driven by a diverse group of stocks, and he highlights four recent portfolio additions. Andrew describes China’s weak consumer and industrial demand, and the steps China’s leaders could take to offset the malaise. Paul Espinosa discusses a value holding in Brazil.
MorePortfolio Briefing – Second Quarter 2023
– Brent Clayton introduces a new Value Fund holding, Fertiglobe, a Middle Eastern fertilizer manufacturer. He illustrates how the Fund manages volatility using the example of Fund holding XP, Inc. Paul Espinosa discusses the Fund’s exposure to China and how he evaluates the associated geopolitical risk.
MoreLetter to Shareholders – Annual Report
– Lydia So explains that the current environment presents opportunities to invest in durable businesses that can consolidate and gain market share, as less competitive companies either fail or retreat from markets. She describes the characteristics she seeks in growth securities.
Letter to ShareholdersMumbai: Cashless is King
– A national digital payments platform in India is changing how individuals and merchants transact.
MoreDubai: A New Beacon for Capital
– Dubai is ascending as a global financial center as policies attract foreign capital and companies demonstrate improved corporate governance.
MorePrevailing Winds
Learn MoreChina’s Reopening and Corporate Expansion Overseas
– After a recent trip to China, Nicholas Borst reports on China’s reopening, the operating environment for the country’s private sector, and Chinese companies’ efforts to expand internationally.
MoreOf Profits and Peril: Corporate China’s Push Abroad
– Chinese companies are making an unprecedented effort to expand internationally, yet they face growing restrictions in the U.S. and other global markets.
Of Profits and Peril: Corporate China’s Push AbroadChina’s Balance Sheet Challenge
– In an article for China Leadership Monitor, Nicholas Borst examines the scale of China’s debt problem and how policymakers can put the country’s balance sheet on firmer footing.
China’s Balance Sheet ChallengeNews and Commentary
Value Investor Insight – Roads Less Traveled
– In an interview with Value Investor Insight, Andrew Foster explains that he searches for companies that can grow with sustainable profitability, and whose stocks are cheap enough to make them relatively immune to economic and cyclical risks.
Value Investor Insight InterviewMutual Fund Observer – Seafarer Overseas Value Fund
– In Mutual Fund Observer’s profile of the Value Fund, Paul Espinosa describes EM corporates that are expanding internationally, led by management teams with experience in navigating challenging market conditions. : As of March 31, 2023, Samsung Biologics Co., Ltd. comprised 4.3% of the Seafarer Overseas Growth and Income Fund, Samsung Electronics Co., Ltd., Pfd. comprised 3.5% of the Fund, Samsung SDI Co., Ltd. comprised 2.6% of the Fund, Samsung C&T Corp. comprised 1.4% of the Fund, Samsung Electronics, Co., Ltd. comprised 1.4% of the Fund, WH Group, Ltd. comprised 1.3% of the Fund, Ambev SA comprised 2.1% of the Fund, Anheuser-Busch InBev SA comprised 2.2% of the Fund, and DFI Retail Group Holdings, Ltd. comprised 1.4% of the Fund. As of March 31, 2023, Samsung SDI Co., Ltd. comprised 3.1% of the Seafarer Overseas Value Fund, Samsung C&T Corp. comprised 2.0% of the Fund, Samsung C&T Corp., Pfd. comprised 0.2% of the Fund, WH Group, Ltd. comprised 2.7% of the Fund, Ambev SA comprised 2.3% of the Fund, Anheuser-Busch InBev SA comprised 2.8% of the Fund, Melco International Development, Ltd. comprised 3.5% of the Fund, Shangri-La Asia, Ltd. comprised 3.3% of the Fund, and DFI Retail Group Holdings, Ltd. comprised 2.4% of the Fund. View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. As of March 31, 2023, the Seafarer Funds did not own shares in the other securities referenced in this commentary. Holdings are subject to change.
MoreCSIS ChinaPower Podcast – Interview with Nicholas Borst
– In an interview with the CSIS ChinaPower Podcast, Nicholas Borst discusses how growing debt levels in China – concentrated among local governments, real estate developers, and state-owned enterprises – stem from an imbalanced fiscal system, and why they are a source of financial risk. Listen
MoreMexico City: Corporate Underinvestment
– One reason for Mexico’s slow economic growth is that companies are underinvesting, largely in response to the country’s current political environment.
MoreWhat is Control Party Analysis?
– Seafarer defines Control Party Analysis as an empirical means to assess the governance of a company, used in lieu of subjective attempts to determine “the quality of management.”
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