Portfolio Briefing – Third Quarter 2025
– Paul Espinosa and Lydia So report that technology stocks led performance for the Growth and Income Fund and the EM benchmark. Paul and Lydia discuss how tariffs are affecting portfolio companies to date. They introduce two new holdings: a gas producer and an industrial manufacturer.
MorePortfolio Briefing – Third Quarter 2025
– Brent Clayton reviews two main drivers of Value Fund performance: improved market sentiment in China and holdings that returned capital to shareholders. Paul Espinosa reports on a new position in the UAE and explains that the Fund is deriving returns from a more diversified set of sources than the benchmark.
MoreNobody Wins in a Price War: Destructive Competition in China
– Industrial policy in China has caused overcapacity and deflation. Government interference has made the problem worse by allowing unprofitable firms to avoid bankruptcy.
Destructive Competition in ChinaCo-Chief Investment Officer Update
– Paul Espinosa was named Co-Chief Investment Officer (Co-CIO) of Seafarer Capital Partners, the adviser to the Seafarer Funds. Andrew Foster, the CIO of the Firm since its founding in 2011, will remain in the role, serving as Co-CIO alongside Paul.
MessagePortfolio Review –
– Andrew Foster reports that while both the Growth and Income Fund and EM benchmark experienced strong gains from financial services stocks and currencies, the Fund’s gains were otherwise more diversified. He notes that despite the volatility and chaos that transpired in the quarter, one thing stands out, lost amid the noise: companies in the EM are producing earnings consistently again, and the earnings are growing.
Portfolio ReviewPortfolio Review –
– Brent Clayton explains that Value Fund performance was led by holdings within the “Breakup Value” and “Asset Productivity” sources of value. He examines the muted direct exposure of Fund holdings to U.S. tariffs, and how the portfolio is positioned relative to the uncertain effects of the trade war on currencies and economic growth.
Portfolio ReviewPrevailing Winds
Learn MoreChina’s Models of Competition
– China’s unique models of competition help explain why some industries flourish while others stagnate.
China’s Models of Competition
What’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 RelationsNews and Commentary
Seafarer Announces Appointment of Paul Espinosa as Co-Chief Investment Officer
– Paul Espinosa was named Co-Chief Investment Officer (Co-CIO) of Seafarer Capital Partners, the adviser to the Seafarer Funds. Andrew Foster, the CIO of the Firm since its founding in 2011, will remain in the role, serving as Co-CIO alongside Paul.
News ReleaseChina Leadership Monitor – The Economic Costs of China’s Self-Sufficiency Drive
– In an article for China Leadership Monitor, Nicholas Borst explains that China’s drive for economic self-reliance comes with significant tradeoffs and, ironically, may provoke some of the risks it seeks to avoid. : As of June 30, 2025, securities mentioned in this commentary comprised the following weights in the Seafarer Overseas Growth and Income Fund: Samsung Electronics, Co., Ltd. (3.5%), and Samsung Electronics Co., Ltd. Pfd. (0.9%). As of June 30, 2025, the Seafarer Funds did not own shares in the other securities referenced in this commentary. View the Seafarer Overseas Growth and Income Fund’s Top 10 Holdings. Holdings are subject to change.
MoreThe Wire China – Interview with Nicholas Borst
– In an interview with The Wire China, Seafarer’s Nicholas Borst discusses Beijing’s approach to managing its economy: utilizing private markets while maintaining state control.
MoreMoney 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
MoreRevisiting 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.
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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