| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | 29.4% | - |
The Mobius Emerging Markets Fund delivered a 29.4% return in Q2 2026, outperforming the MSCI Emerging Markets Mid Cap Index by 10.4 percentage points. Performance was driven by continued repositioning toward the AI infrastructure theme, with the fund building concentrated exposure across the Asian technology supply chain, particularly in Taiwan and South Korea. The investment approach focuses on identifying bottleneck businesses with irreplaceable demand, limited competition, and high switching costs across semiconductors, memory, data center power infrastructure, and inference workloads. India was a significant contributor, with the fund increasing exposure during earlier market weakness based on conviction in the country's long-term structural drivers including domestic demand, infrastructure investment, and financialisation of household savings. The portfolio was actively managed during the quarter, with capital recycled from positions approaching intrinsic value into new opportunities offering more attractive risk-adjusted returns. Top contributors included King Slide, SK Square, and Elite Material, all benefiting from AI infrastructure demand. The fund remains positioned across 29 holdings in 12 countries, with 36.6% in technology, 27.2% in India, and 25.6% in Taiwan.
MCP focuses on identifying exceptional businesses in emerging and frontier markets with durable competitive advantages, capable management teams, and the ability to compound value over many years, with current emphasis on Asian AI supply chain bottleneck businesses, Indian structural growth opportunities, and quality growth companies benefiting from the AI infrastructure buildout.
The pace of change across the AI landscape, together with evolving opportunities in India and other emerging markets, continues to create a dynamic investment environment. While geopolitical developments, shifts in trade, and monetary policy are likely to continue contributing to periods of market volatility, our investment decisions remain driven by company fundamentals rather than short-term market movements. We remain focused on identifying exceptional businesses, led by capable management teams, with durable competitive advantages and the ability to compound value over many years. We believe this approach leaves the portfolio well positioned to navigate an evolving market environment and deliver attractive long-term returns.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Jul 28 2026 | 2026 Q2 | 000660 KS, 034730.KS, 2330.TW, 2365.TW, 2458.TW, 2472.TW, 5274.TW | AI, Data centers, emerging markets, India, mid cap, semiconductors, Taiwan, technology | - | MCP delivered 29.4% in Q2 2026, outperforming by 10.4 percentage points through concentrated exposure to Asian AI supply chain bottlenecks and Indian structural growth. The fund repositioned toward companies with greater earnings visibility in semiconductors, memory, and data center infrastructure while reducing software exposure where AI creates business model uncertainty. Active capital recycling from appreciated positions into new high-conviction ideas drove outperformance. |
| May 1 2026 | 2026 Q1 | AAPL | AI, Data centers, emerging markets, Geopolitical, India, semiconductors, Taiwan, technology | - | MCP repositioned away from AI-disrupted software into semiconductors and industrials, delivering 1.0% in Q1 amid geopolitical tensions. Taiwan holdings drove performance through semiconductor cycle strength. Portfolio offers 25.6% expected earnings growth versus 18.2% for benchmark. India remains attractive long-term despite near-term headwinds. Focus on bottom-up selection in volatile markets. |
| Jan 26 2026 | 2025 Q4 | EPAM, KARO, MELI, MMYT, TCOM | active management, Asia, emerging markets, mid cap, Quality, Recovery, technology, underperformance |
EPAM 2383 TT RADL3 BZ MMYT KARO |
MCP Emerging Markets Fund outperformed in Q4 despite a challenging 2025 for quality mid-cap stocks. Style headwinds drove underperformance as markets favored large, liquid names over the fund's high-quality, under-researched holdings. Strong portfolio fundamentals with 26% expected EPS growth and significant EM valuation discounts position the strategy for potential catch-up as conditions normalize. |
| Oct 22 2025 | 2025 Q3 | 8131.T, EPAM, MELI, NVDA, TCOM, TSMC | active management, AI, China, emerging markets, Rate Cuts, semiconductors, tariffs, technology | - | MEMF underperformed in Q3 as tariff uncertainty and value rotation weighed on quality-focused emerging markets strategy. Strong underlying company fundamentals with many Q2 earnings beats demonstrate portfolio quality. Fed rate cuts, easing tariff volatility, and AI momentum should provide supportive backdrop for recovery, with management increasing conviction through additional capital deployment. |
| Jul 21 2025 | 2025 Q2 | AMZN, GOOGL | AI, emerging markets, India, Korea, semiconductors, technology, Trade Policy, volatility |
3016.TW 3374.TW |
MCP delivered 11.8% in Q2 despite trade policy volatility, maintaining high-conviction focus on 29 emerging market holdings. Strong AI demand drove technology outperformance while India and South Korea reforms created opportunities. Limited tariff exposure through software and domestic consumption plays positions the fund well for EM recovery amid rebounding inflows and potential USD weakness. |
| Oct 23 2024 | 2024 Q3 | CLS.JO, MELI, NVDA, TOTS3.SA, YUMC | AI, ASEAN, China, emerging markets, mid cap, Rate Cuts, technology, volatility | - | MCP delivered 6.6% returns in Q3 while navigating market volatility through disciplined stock selection in emerging markets. Strong conviction in ASEAN region drives new investments in Malaysia and Vietnam. Fed rate cuts create favorable backdrop for EM outperformance. Portfolio companies in AI and technology sectors demonstrate strong fundamentals despite market skepticism, offering attractive risk-reward profiles. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI infrastructure investment is driving structural re-rating of the semiconductor industry, with hyperscaler capex expected to reach $765 billion in 2026 and surpass $1 trillion in 2027. The portfolio is positioned across the Asian AI supply chain, focusing on bottleneck businesses with irreplaceable demand, limited competition, and high switching costs. The shift from training to inference workloads is creating new opportunities in CPUs and general-purpose servers. |
Data Centers Semiconductors Cloud GPUs |
SemiconductorsThe semiconductor market is projected to reach $1.29 trillion in 2026, driven by AI infrastructure rather than consumer cycles. Asian suppliers, particularly in Taiwan and South Korea, dominate the supply chain with over 90% of NVIDIA's costs. Memory has transformed from commodity to strategic technology, with HBM in short supply and customers signing long-term agreements, reducing historical boom-bust cycles. |
Memory Taiwan South Korea Semi Equipment | |
IndiaIndia was one of the strongest-performing emerging markets in Q2, with the Nifty 50 rising 6.7% and mid-cap and small-cap indices outperforming by 10 and 17 percentage points respectively. The fund increased exposure during earlier market weakness based on conviction that the long-term investment case remained intact, supported by resilient domestic demand, infrastructure investment, and continued financialisation of household savings. |
Financials Infrastructure Spending Small Caps | |
Data CentersAI data centers represent a structural power problem, with NVIDIA GB200 racks drawing 120-140 kW versus 7-10 kW for standard servers, and next-generation systems requiring 600 kW. Hyperscalers have announced close to 200 GW of capacity, with 50% of developers ranking power availability as their single most important bottleneck. A third of US data centers are expected to run entirely on onsite power by 2030. |
Energy Transition Power Equipment Grid Upgrade | |
TaiwanTaiwan is central to the AI supply chain, with NVIDIA spending $150 billion annually with Taiwanese partners. TSMC dominates leading-edge logic and advanced packaging, while a deep ecosystem of companies spanning semiconductor IP, test equipment, thermal management, power electronics, and high-speed connectivity has become indispensable to AI infrastructure globally. |
Foundries Semi Equipment Components | |
MemoryMemory has become a key constraint in AI infrastructure, with NVIDIA's roadmap increasing HBM capacity from 80GB in Hopper to 288GB in upcoming Rubin platform. HBM is in short supply with significant pricing power for SK Hynix and Samsung. Customers are signing long-term supply agreements, reducing boom-bust cycles and transforming memory from commodity to strategic growth market. |
HBM Storage Semiconductors | |
| 2026 Q1 |
AIAI automation tools triggered widespread sell-off in legacy enterprise and SaaS companies. Manager actively repositioned portfolio away from software businesses facing disruption from generative AI and automation, particularly in outsourcing and enterprise software. Concerns about AI disruption in travel platforms and search behavior. |
Automation Enterprise Software SaaS Disruption Generative AI |
SemiconductorsStrong performance from semiconductor holdings driven by data center demand and AI-related applications. Taiwan companies deeply integrated into global semiconductor supply chain. Memory semiconductors benefiting from AI demand and supply discipline. Portfolio positioned to benefit from semiconductor investment cycle. |
Memory Data Centers Taiwan Supply Chain HBM | |
Data CentersContinued momentum in data center demand driving semiconductor ecosystem. Server-related companies reporting strong growth. India positioning to become global AI hub with significant data center investment planned. Infrastructure requirements creating opportunities for cable and power companies. |
Servers Infrastructure AI Hub Power Cables | |
IndiaDespite near-term underperformance, India remains attractive long-term with strong structural drivers including consumption, manufacturing, infrastructure, and AI leadership ambitions. Valuations more attractive after compression. Government supportive policies for data centers and manufacturing. |
Consumption Manufacturing Infrastructure Valuations Structural Growth | |
TaiwanKey beneficiary of global semiconductor investment cycle with technology companies integrated into supply chain. Several holdings delivered strong Q4 results and encouraging 2026 expectations. Positioned to benefit from high-performance compute and memory demand from data centers. |
Semiconductor Cycle Supply Chain Technology Performance Growth | |
South KoreaBenefits from structural strength in semiconductors and advanced manufacturing. Global leader in memory semiconductors well positioned for AI-related demand. Value Up policy addressing Korea Discount supports engagement strategy and shareholder returns. |
Memory Manufacturing Value Up Korea Discount Governance | |
| 2025 Q4 |
Defense SpendingThe entire world is rapidly rearming off an extremely low base of defense spending. Global armaments materially outperformed for the year with top contributors including Rheinmetall, Palantir Technologies, and RTX. |
Armaments Defense Rearmament Geopolitical Security |
GoldGold is positioned as the premier form of commodity money with unique physical properties and reliable scarcity. The manager created a leveraged gold exposure called 'Gresham's Wrath' that materially outperformed benchmarks. |
Commodity Money Inflation Hedge Monetary Reserve Physical Gold Debasement | |
Precious Metal Royalty/Streaming CompaniesThese companies provide diversified exposure to precious metals by benefiting from both price appreciation and production growth without operational mining risks. They materially outperformed for the year. |
Royalties Streaming Mining Finance Capital Light Diversification | |
Capital MarketsCapital markets exchanges are essential high-margin toll roads for the economy with immense operating leverage and natural inflation hedging. Both exposures materially outperformed for the year. |
Exchanges Trading Fees Market Data Network Effects Toll Roads | |
BitcoinDespite long-term bullish views, the manager completely exited Bitcoin positions in mid-November using a risk management framework. The position kept falling after exit while US Large Cap equities rotated into continued to increase. |
Cryptocurrency Risk Management Digital Assets Volatility Exit | |
Managed FuturesAn exposure designed to generate absolute returns with low correlations to equities and bonds. The strategy was updated to include European markets and uses multiple models to capture different market dynamics. |
Alternative Investments Trend Following Commodities Absolute Return Diversification | |
| 2025 Q3 |
AIStrong Q2 results from US hyperscalers and confirmation of continued large-scale AI capital expenditure reignited confidence in AI-led growth. Big Tech has invested more than $155 billion in AI this year. This strength in US and Chinese technology has also supported companies in emerging markets like Taiwan and South Korea which play vital roles in AI supply chains. |
Hyperscalers Capex Supply Chain Semiconductors GPUs |
SemiconductorsNVIDIA's Rubin GPU rollout and rising ASIC volumes are boosting demand across the semiconductor supply chain, benefitting companies such as Elite Material. Taiwan should benefit from the global AI momentum with its global leadership in advanced semiconductors underpinning both industry demand and geopolitical importance. Korea should profit from a semiconductor recovery. |
NVIDIA ASIC GPU Taiwan Korea | |
TariffsTariff-related uncertainty in the first half of the year pushed investors toward safe havens. President Trump again delayed the implementation of reciprocal tariffs, allowing time for several major trade deals to be struck. Finally, tariffs took effect on 1 August across more than 90 countries, hitting India and Brazil hardest at 50%. |
Trump Trade Uncertainty India Brazil | |
RatesThe Federal Reserve's first interest rate cut of the year this September brought rates to 4-4.25%. Fed officials also hinted that further rate cuts would follow. Lower US interest rates tend to benefit emerging markets by making lower yielding developed market assets less attractive, potentially prompting investors to seek higher returns in EMs. |
Fed Rate Cuts Emerging Markets Yields Investment | |
| 2025 Q2 |
AIAfter the DeepSeek scare, Q1 results from Amazon and Alphabet confirmed strong AI investment momentum. Portfolio companies like Chroma and Elite Material benefited from AI-related demand, with Chroma seeing 55% revenue growth driven by China's AI datacenter buildout and EMC benefiting from strong demand for CCLs used in ASIC servers. |
Datacenters Cloud Semiconductors Infrastructure Computing |
Trade PolicySweeping reciprocal tariffs announced April 2nd shocked global markets, with subsequent pauses and extensions creating policy uncertainty. The fund has limited direct exposure through software-as-a-service holdings and semiconductor companies with minimal US revenue exposure, while favoring domestic consumption-oriented businesses. |
Tariffs Policy Uncertainty Geopolitical Trade | |
IndiaIndia stands out as a particularly strong focus with improving macro backdrop including rate cuts, easing inflation, and increased banking liquidity. The fund added undervalued names during market weakness and invested in infrastructure plays like APL Apollo and KEI Industries to capitalize on energy capex demands. |
Infrastructure Consumption Banking Capex Recovery | |
South KoreaThe June 3rd elections brought political stability, boosting stock performance. The new government is pursuing market-friendly reforms to tackle the Korea discount and enhance corporate governance, creating new opportunities particularly in technology. The fund reduced positions in Classys after realizing significant profits. |
Reform Governance Technology Politics Discount | |
SemiconductorsTechnology holdings have been realigned amid macroeconomic challenges and shifting IT spending priorities. Portfolio companies like Chroma and Elite Material delivered strong results, with EMC benefiting from 70% bottom-line acceleration driven by demand for higher-priced CCLs used in ASIC servers. |
Equipment Testing CCL ASIC Foundry | |
| 2024 Q3 |
AIPortfolio companies are beneficiaries of AI/HPC momentum with less market speculation than widely known names. Chroma beat Q2 earnings by 15% and benefits from AI/HPC momentum, silicone photonics and advanced packaging. Despite high valuations and significant R&D investments questioning AI's promise, Nvidia's record quarterly revenues of $30.0 billion reinforced belief in the technology's potential. |
Artificial Intelligence HPC Semiconductors Testing Equipment Photonics |
ASEANStrong conviction in ASEAN region reinforced by recent research trips to Singapore, Thailand, Indonesia, Hong Kong, Malaysia and Vietnam. Region benefits from favorable demographics, growing consumer base, rising tourism, and shift in global supply chains away from China. Added high-conviction holdings CTOS from Malaysia and FPT from Vietnam. |
Southeast Asia Demographics Tourism Supply Chain Friendshoring | |
VolatilityVIX spiked to 39 in early August, one of the largest spikes on record, driven by weak US employment data, yen carry trade unwinding, and AI skepticism. Manager views volatility as opportunity to add to existing positions or invest in new high-conviction ideas unfairly dragged down by market sentiment. 25 years of experience shows selling on volatility alone usually leads to poor investment decisions. |
VIX Market Swings Uncertainty Opportunity Risk Management | |
RatesFed initiated rate-cutting cycle with half-point cut on September 18. Lower interest rates in advanced economies typically weaken the dollar, ease EM debt burdens, strengthen local currencies, and drive investment into riskier EM assets. Since 1988, EM equities have outperformed DM equities in 4/5 Fed rate-cutting cycles, returning 29% in 24 months following last Fed rate hike. |
Federal Reserve Rate Cuts Dollar EM Currencies Debt Burdens | |
ChinaCautious on China due to ongoing structural challenges, particularly in property sector, keeping exposure limited. Chinese stimulus measures in September included reducing mortgage rates and reserve requirements, plus billions in loans to revive stock market. Manager believes China will focus on economic priorities like property overcapacity and unemployment rather than geopolitical tensions. |
Stimulus Property Sector Structural Challenges Monetary Policy Overcapacity |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Jul 28, 2026 | Fund Letters | Mobius Capital Partners | - | King Slide Works | Other | Technology Hardware, Storage & Peripherals | Bull | Taiwan Stock Exchange | AI infrastructure, data center hardware, high switching costs, hyperscale, patent portfolio, Server Components, Supply Chain Bottleneck, Taiwan, technology hardware | Login |
| Jan 26, 2026 | Fund Letters | Carlos Hardenberg | EPAM | EPAM Systems Inc. | Information Technology | IT Services & Consulting | Bull | New York Stock Exchange | AI, buybacks, Digital transformation, IT services, Software | Login |
| Jan 26, 2026 | Fund Letters | Carlos Hardenberg | 2383 TT | Elite Material Co Ltd | Information Technology | Electronic Components | Bull | New York Stock Exchange | AI hardware, data centers, materials, Pcbs, semiconductors | Login |
| Jan 26, 2026 | Fund Letters | Carlos Hardenberg | RADL3 BZ | Raia Drogasil SA | Consumer Staples | Retail Pharmacies | Bull | Brasil Bolsa Balcão | Brazil, Glp1, Healthcare Consumption, Pharmacies, retail | Login |
| Jan 26, 2026 | Fund Letters | Carlos Hardenberg | MMYT | MakeMyTrip Ltd | Consumer Discretionary | Online Travel Agencies | Bull | NASDAQ | Consumer Growth, India, Online Travel, operating leverage, Platforms | Login |
| Jan 26, 2026 | Fund Letters | Carlos Hardenberg | KARO | Karooooo Ltd | Information Technology | Application Software | Bull | NASDAQ | ARPU, Fleet Management, SaaS, Subscriptions, Telematics | Login |
| Jul 21, 2025 | Fund Letters | Mobius Capital Partners | 3016.TW | Chroma ATE Inc | Information Technology | Electronic Equipment, Instruments & Components | Bull | Taiwan Stock Exchange | AI infrastructure, datacenter, Foundry, Metrology, Power Testers, Semiconductor, Taiwan, Testing Equipment | Login |
| Jul 21, 2025 | Fund Letters | Mobius Capital Partners | 3374.TW | Elite Material Co Ltd | Information Technology | Electronic Equipment, Instruments & Components | Bull | Taiwan Stock Exchange | AI infrastructure, ASIC Servers, CCL, Copper-Clad Laminates, High-Speed, hyperscalers, materials, Taiwan | Login |
| TICKER | COMMENTARY |
|---|---|
| 2330.TW | King Slide Works' revenue increased by 98% quarter-on-quarter, exceeding consensus estimates. This was driven by the ramp-up and shipment of several new products and strong demand from both general and AI server customers. This Taiwanese company is the global leader in server rail systems, a critical component of AI servers. AI racks are significantly heavier and more complex than traditional servers, requiring highly engineered rail systems where reliability is paramount. Through close collaboration with customers during product development and a strong patent portfolio, King Slide has established a leading position in this niche, benefiting from high switching costs and long-term customer relationships. We invested after extensive research into the AI supply chain, identifying King Slide as a key beneficiary of rising investment in AI infrastructure. Despite its market leadership and strong profitability, the shares were trading at an attractive valuation. We believe the company remains well positioned to benefit as hyperscalers continue to invest in increasingly sophisticated AI server architectures. |
| 034730.KS | SK Square's performance was driven by strong share price momentum in its underlying holding SK Hynix, which continues to benefit from tight supply in the memory market and a higher share of long-term contracts with key customers. These factors are expected to support strong profitability and help moderate the memory industry's inherent cyclicality. Within the portfolio, SK Square provides exposure to this trend through its stake in SK Hynix. |
| 2365.TW | Elite Material continued to benefit from robust demand and favourable pricing for high-end copper clad laminates used in AI data centre applications. |
| 000660.KS | SK Hynix continues to benefit from tight supply in the memory market and a higher share of long-term contracts with key customers. These factors are expected to support strong profitability and help moderate the memory industry's inherent cyclicality. High Bandwidth Memory (HBM), which is specifically designed for AI, is in short supply and companies such as SK Hynix and Samsung have gained significant pricing power. |
| 2458.TW | E Ink is listed among the top 10 holdings at 5.2% of the portfolio in the Technology sector. |
| 2472.TW | Kaori Heat Treatment is listed among the top 10 holdings at 4.4% of the portfolio in the Industrials sector. The portfolio is exposed to the power theme through Kaori Heat Treatment, one of the qualified suppliers of reactor chambers for Bloom Energy's systems. |
| 5274.TW | MEMF's portfolio company ASPEED exemplifies the inference opportunity, with a leading market position in baseboard management controllers used to remotely monitor both general and AI servers. |
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