Portfolio Briefing – First Quarter 2025
– Paul Espinosa reports that company fundamentals drove stock prices for the Growth and Income Fund’s top contributors, and he explains why it was a “quarter of surprises.” Lydia So discusses how Fund holdings may be impacted by tariffs. Paul and Lydia introduce two new holdings, a bank and a medical device manufacturer.
MorePortfolio Briefing – First Quarter 2025
– Paul Espinosa reviews the portfolio holdings that impacted Value Fund performance. He notes that WH Group listed its U.S. subsidiary during the quarter, which helped the company to unlock value that was trapped on its balance sheet. Paul provides updates on the Fund’s China exposure and cash level.
MoreWhat’s Wrong with Chinese Corporate Profits?
– State-owned firms’ disproportionate control of corporate profits sheds light on the biggest challenge facing the Chinese economy.
What’s Wrong with Chinese Corporate Profits?America First Investment Policy: What it Means for U.S.-China Relations
– In an interview with the National Committee on U.S.-China Relations, Nicholas Borst discusses the implications of the U.S. administration’s new America First Investment Policy for U.S.-China economic and trade relations.
America First Investment Policy: What it Means for U.S.-China RelationsPortfolio Review –
– Andrew Foster explains that currency losses accounted for over half of the decline of both the Growth and Income Fund and the EM benchmark. He introduces a new Fund holding, and describes the Fund’s growth in dividends and earnings in 2024. Andrew notes that the “lost decade” in EM is likely drawing to a close.
Portfolio ReviewPortfolio Review –
– Brent Clayton reports that cyclical stocks and Brazil holdings detracted from Value Fund performance, while certain company-specific developments helped to offset declines. Paul Espinosa discusses four key tenets of the Fund to help investors understand how the Fund fits into the current investment environment.
Portfolio ReviewRevisiting the Seven Sources of Value in Emerging Markets
– Brent Clayton examines the practical lessons Seafarer’s Value team has learned in its pursuit of seven distinct sources of value in emerging markets.
MorePrevailing Winds
Learn MoreChina 2025 Outlook
– After a recent trip to China, Nicholas Borst reports that while the Chinese economy is showing some signs of stabilization, there are still long-term structural problems holding back economic growth.
MoreWhy Does China Need to Recapitalize its Banks?
– A pledge to recapitalize banks in China is a tacit admission the banks are struggling to meet the demands placed on their balance sheets.
Why Does China Need to Recapitalize its Banks?Are China’s Economic Challenges Cyclical or Structural?
– China’s economy is weighed down on four fronts – real estate, consumption, fiscal issues, and the private sector – and political obstacles are standing in the way of addressing these problems.
Are China’s Economic Challenges Cyclical or Structural?News and Commentary
Perspective on the Fate of U.S. Dollar Dominance
– Why might the U.S. dollar weaken under an aggressive tariff scheme, rather than strengthen as is commonly believed?
MoreEmerging Markets Briefing
– Seafarer addresses how to invest in the emerging markets for the next decade.
Emerging Markets BriefingSeafarer Reveals Key Drivers of Performance in Emerging Markets Value Investing
– Seafarer published a white paper that examines the practical lessons Seafarer’s Value team has learned in its pursuit of seven distinct sources of value in the emerging markets.
News ReleaseSurge in Dollar Convertible Bonds From Chinese Companies
– An unprecedented surge in dollar-denominated convertible bonds issued by Chinese companies warrants the attention of global investors.
MoreThe Wire China – Under Pressure: Why China is Pledging More Capital for its Banks
– In The Wire China, Seafarer’s Nicholas Borst writes that Beijing’s pledge to recapitalize large banks is intended to prevent growing pressures within the financial system from escalating to a crisis. : As of September 30, 2024, the Seafarer Funds did not own shares in the securities referenced in the article. View the Top 10 Holdings for the Growth and Income Fund and the Value Fund. Holdings are subject to change.
MoreFund Resources
Field Notes
Explore Our MapSeoul: The Corporate Big Leagues
– The outsized influence of South Korea’s large family-run conglomerates in daily life was driven home at the ballpark.
MoreSeoul: Taxes, and the Corporate Value-up Program
– A new national initiative in South Korea aims to improve the capital efficiency of listed corporates and bring about better treatment of minority shareholders.
MoreSão Paulo: Pharmacies on Every Corner
– Pharmacies in Brazil are becoming service hubs and occupying a more prominent role in the healthcare industry.
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