Seafarer Fund Portfolio Review

heezsafe

Andrew Foster dropped a note in my mailbox this afternoon to inform me that the 4th Qtr Portfolio review for SFGIX has been posted. As most know, Mr. Foster worked in Asia for some time before his days at Mathews and reacts (and doesn't react) to Asian events in uncharacteristic ways. Always worth a glance, IMO, even if one isn't prepared to have him work with your money just yet.

http://www.seafarerfunds.com/fund/portfolio-review

His current stance on Asia--- and on emerging market stocks in general--- has taken a turn, and I think it's worth a smoke in the pipe:

February 2016 – In his latest portfolio review, Andrew Foster discusses a shift in the Fund’s composition, away from the Asian region, and toward larger stocks at the expense of smaller ones. Next, he speculates as to the cause behind the collapse in China’s capital markets. While he does not offer a definitive explanation, he does suggest that circumstances may be serious enough to warrant attention from investors.

Lukemon

Thanks for the posting, I always enjoy his discussions, he admits when he makes a mistake and he also says when he doesn't know the answers, I am going to continue to invest with him, thanks again.

Crash

I'm in the fund. I find his reports informative, not full of hot air. Frank. Straightforward.

Joe

I read it and sold all my emerging markets funds. Was thinking about doing it anyway but this pushed me into action

AndyJ

Gotta admit, I didn't think much of his reallocation to overweight Latin America, but the move and the timing was impeccable. LA's had a strong rebound in the last weeks, and Asia's lagging.

Mona

heezsafe said:

Andrew Foster dropped a note in my mailbox this afternoon to inform me that the 4th Qtr Portfolio review for SFGIX has been posted. As most know, Mr. Foster worked in Asia for some time before his days at Mathews and reacts (and doesn't react) to Asian events in uncharacteristic ways. Always worth a glance, IMO, even if one isn't prepared to have him work with your money just yet.

http://www.seafarerfunds.com/fund/portfolio-review

His current stance on Asia--- and on emerging market stocks in general--- has taken a turn, and I think it's worth a smoke in the pipe:

February 2016 – In his latest portfolio review, Andrew Foster discusses a shift in the Fund’s composition, away from the Asian region, and toward larger stocks at the expense of smaller ones. Next, he speculates as to the cause behind the collapse in China’s capital markets. While he does not offer a definitive explanation, he does suggest that circumstances may be serious enough to warrant attention from investors.

heezafe,

Thanks for the information.

It sounds like you know a bit about the Matthews Funds as well a Seafarer Overseas Growth and Income.

If my research is correct and current, MAPIX is about 30% Japan and 35% China/Hong Kong, MACSX is about 36% China/Hong Kong and 6% Japan, and the last I looked SFGIX was about 17% China/Hong Kong and 3% Japan, with a total of 52% in Asia, so it is more diverse in the Asia space than MACSX or MAPIX. Also, SFGIX had a 13% position in Emerging Europe, 21% in Latin America, and 5% in South Africa.

Currently I own MACSX (seems to be the least risky of the three) in a retirement account and I am trying to figure out if owning SFGIX and or MAPIX gives me added diversification, or I just would be collecting funds.

Any thoughts would be appreciated.

Mona

BobC

Based on Seafarer's recent shift to have more focus on LA and less on Asia, there is clearly more diversification in owning MAPIX and SFGIX than there was previously. While SFGIX owned more mid and small cap stocks in the past, that is changing, too. In that regard, the market cap could well be closer to MAPIX. In terms of stock overlap, there was very little before, so probably even less now. Mr. Foster runs SFGIX in much the same way Matthews runs their funds...a good thing in my opinion. Owning both of these might fit in a conservative investor's portfolio, where some exposure to EM is desired, but in a cautious and conservative way.

Crash

...Then I dun good.

JoJo26

Very little overlap from a quick glance, in terms of individual holdings. I may have missed something, but it looked like Taiwan Semi is the only name held in both portfolios.