Portfolio Briefing – Second Quarter 2025
– Andrew Foster explains that currency gains and holdings in the financial and consumer sectors drove the Growth and Income Fund’s performance. Nicholas Borst compares market returns in Hong Kong versus mainland China and assesses U.S.-China trade relations. Andrew discusses a change in how EM currencies operate relative to the U.S. dollar.
MorePortfolio Briefing – Second Quarter 2025
– Paul Espinosa discusses the fundamental drivers of the Value Fund’s performance in the quarter: return of capital, the “Breakup Value” source of value, and emerging revenue growth. Brent Clayton reports on the state of corporate governance reform in South Korea. Paul describes the shared qualities of the Fund’s bank holdings.
MoreChina’s Models of Competition
– China’s unique models of competition help explain why some industries flourish while others stagnate.
China’s Models of CompetitionMoney Life – Interview with Andrew Foster
– In an interview with Money Life’s Chuck Jaffe, Andrew Foster reports on the growing earnings and strengthening currencies in emerging markets. He discusses the importance of gaining exposure to non-U.S. dollar sources of return, including diversified streams of investment income. Listen
MorePortfolio Review –
– Andrew Foster reports that amid the market tumult driven by anticipation of a trade war, it felt eerily calm in the emerging markets. Emerging currencies produced gains, and comprised about one quarter of the Growth and Income Fund’s gains. Andrew introduces two new Fund holdings, and emphasizes that in the current unpredictable macro environment, Seafarer remains a bottom-up, micro-driven firm.
Portfolio ReviewPortfolio Review –
– Paul Espinosa notes that the Value Fund and EM benchmark rose in a quarter dominated by tariff-related headlines. He reports that the Fund added a new bank holding, Banorte, due to its dividend yield, profit margin stability, and surplus capital. Amid the uncertainty of global tariffs, Paul explains why investors should consider diversifying away from the U.S. dollar into international assets.
Portfolio ReviewPrevailing Winds
Learn 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 RelationsChina 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.
MoreNews and Commentary
Revisiting 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.
MorePerspective 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.
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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