| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 3.1% | 3.2% | 8.3% |
| 2025 |
|---|
| 8.3% |
Aikya's Global Emerging Markets Fund underperformed in December 2025, returning 0.2% versus the benchmark's 3.0%, primarily due to minimal exposure to AI-driven semiconductor stocks that led markets higher. The fund maintains its disciplined approach of investing in high-quality companies at sensible valuations, despite missing the semiconductor rally driven by Taiwan and Korean markets. Brazil was the most negatively impacted region due to political uncertainty around the potential Bolsonaro family candidacy in the October 2026 election, which hurt holdings like Bradesco and Natura. However, several companies delivered strong idiosyncratic returns, including Capitec gaining market share in South African banking, EPAM positioned for the next corporate IT spending cycle, and FEMSA showing improvement in retail operations. The fund's 37 holdings are concentrated in Consumer Staples (39.6%) and Financials (24.4%), with geographic exposure led by India (19.7%) and China (17.5%). Management emphasizes that one-month performance is insufficient for meaningful conclusions about their long-term absolute return strategy with downside protection.
Aikya invests exclusively in high-quality emerging markets companies when they are available at sensible valuations, focusing on companies that make a positive contribution to sustainable development.
Aikya's purpose is to generate absolute returns with strong downside protection over the long-term, maintaining that performance over one month is too short a timeframe to draw meaningful conclusions.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jan 29 2026 | 2025 Q4 | 000660.KS, 005930.KS, 1288.HK, 2330.TW, 2912.TW, 3690.HK, BBDO3.SA, CPI.JO, EPAM, HDB, KOF, NTCO3.SA, RDY, UL | AI, Brazil, emerging markets, Quality, semiconductors, valuation | - | The market's continued enthusiasm for AI potential led semiconductor stocks materially higher, with Taiwanese and Korean markets recording further highs. While Aikya believes in the long-term potential of AI, they maintain that both quality and valuation discipline remain paramount. Aikya's investment approach relies on two key pillars: Quality and Valuation. They invest exclusively in high-quality companies when available at sensible valuations, with the fund objective being to invest in high quality companies that make a positive contribution to sustainable development. |
| Oct 29 2025 | 2025 Q3 | - | Consumer Staples, downside protection, emerging markets, Quality Investing, Valuation discipline | - | The report highlights Aikyas disciplined emerging markets approach centered on owning high-quality businesses at sensible valuations, even at the cost of short-term benchmark underperformance. Limited exposure to AI-driven semiconductor leaders weighed on relative returns, but defensiveness, strong balance sheets, and consumer staples exposure helped mitigate downside amid regional volatility. The strategy remains focused on long-term absolute returns with downside protection, favoring quality compounders in EMs over momentum-driven narratives. |
| Jul 31 2025 | 2025 Q2 | - | downside, emerging markets, Governance, Quality, valuation | - | The letter focuses on emerging markets opportunities driven by quality businesses available at reasonable valuations. Management highlights governance discipline, selective country exposure, and skepticism toward overheated AI-linked segments. The outlook favors absolute returns with downside protection across EM. |
| Jan 3 2023 | 2022 Q4 | 003550 KS, 1268 HK, 345 HK, AIA, BBD, BIOC, MRCO IN, NTCO, RDY | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
| 2025 Q3 |
Emerging |
|
QualityThe company emphasizes investing in businesses with excellent economics, durable competitive advantages, and high-integrity management. This quality focus is evident in concentrated equity holdings and operating business acquisitions. |
Durable Advantages Management Quality Economic Moats Competitive Position | |
ValuationAI-related companies continue to command premium valuations while other sectors remain reasonably priced. This valuation divide continues to guide investment activity, with the fund remaining wary of companies trading at exceedingly high valuations that imply exceptional multi-year earnings growth. |
Premium Divide Discipline Stretched Reasonable | |
| 2025 Q2 |
EmergingMarkets |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| No Elevator Pitches found | ||||||||||
| TICKER | COMMENTARY |
|---|---|
| 000660.KS | SK Hynix has solidified its leadership in high-bandwidth memory (HBM), emerging as the exclusive HBM supplier for Microsoft's in-house AI accelerator and securing roughly two-thirds of NVIDIA's anticipated HBM4 demand for its next-generation platforms at meaningfully higher price points and margins than prior generations. |
| 005930.KS | Top gainers included Samsung (+38% in U.S. dollar terms) |
| 2330.TW | Taiwan's TSMC fabricates it. TSMC, the world's largest semiconductor foundry |
| BBDO3.SA | This negatively impacted Brazilian equities and led to weakness in the strategy's holdings including Bradesco and Natura. |
| CPI.JO | Capitec (South Africa) continues to take share within the South African banking system. |
| EPAM | I continue to believe that DAVA is undervalued relative to peers who face similar AI threats as DAVA, such as EPAM. |
| KOF | FEMSA (Mexico) has shown signs of improvement in its core retail operations. |
| NTCO3.SA | This negatively impacted Brazilian equities and led to weakness in the strategy's holdings including Bradesco and Natura. |
| UL | Unilever is a global consumer goods company that develops and markets everyday food and personal care brands for billions of consumers worldwide. Anchored by iconic brands such as Dove, Knorr, Hellmann's and Vaseline, Unilever's refreshed management team is driving improved execution and strategic discipline to deliver more consistent growth, with a focus on higher-margin categories. Specifically, we appreciate their undertaking of various self-help initiatives, including cost-savings programs and brand divestments, which we believe will help unlock sustained value in the future. Despite Unilever's strong outlook, it trades at a discount to its peer group as prior undermanagement has resulted in 1% volume growth for the past decade. This provided us the opportunity to invest in a strong company with leading brands and an improved management team that is poised to increase per-share value. |
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