The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
The Seafarer Overseas Growth and Income Fund's core philosophy is that long-term investment success in emerging markets is achieved by identifying robust, diversified sources of non-U.S. dollar growth and income through bottom-up structural analysis rather than tactical asset rotation. During the first quarter of 2026, the fund gained 3.10%, outperforming its benchmark indices which recorded negative returns. Strong early-quarter performance driven by artificial intelligence enthusiasm and technology holdings, such as Samsung Electronics and Samsung SDI, was partially offset by a sharp market sell-off in March triggered by military conflicts in the Middle East. Geopolitical tensions, particularly regarding disruptions in the Strait of Hormuz, rising commodity prices, and inflationary pressures represent significant macro headwinds. In response, the fund has maintained a disciplined posture, introducing new positions in ASMPT, HD Hyundai Marine Solution, and NARI Technology, while exiting fully valued holdings. The managers remain constructive on the durability and 22% forecasted earnings growth of their portfolio companies, believing that long-term valuation and performance ultimately align with underlying cash flow generation and resilient business operations.
Long-term emerging market outperformance is driven by bottom-up selection of robust, diversified dividend and earnings streams rather than tactical macroeconomic or sector bets.
The manager maintains a constructive outlook on the portfolio's durability despite ongoing geopolitical volatility and macro disruptions. Highlighting a projected portfolio earnings growth of 22% for the year and a gross portfolio yield of 3.3%, they emphasize that long-term fundamental alignment will eventually override short-term market noise.
As of Mar 31, 2026
Founded in 2011 by Andrew and Michelle Foster, Seafarer Capital Partners is a 100% employee-owned firm managing over $3 billion in emerging markets assets. Andrew Foster brings extensive emerging markets experience from his 13-year tenure at Matthews Asia (1998-2011) and INSEAD education. In August 2025, Paul Espinosa joined as Co-CIO, bringing 29 years of global emerging markets expertise. The 17-person firm maintains a conviction-based approach with low turnover and active management, emphasizing long-term fundamental research and corporate governance analysis.
The fund employs a bottom-up, fundamental research approach focusing on dividend-paying securities in emerging markets. Holdings are selected through rigorous analysis of cash flow, capital structure, and control parties, with emphasis on companies capable of paying steady or growing dividends to reduce emerging markets risk. The strategy incorporates proprietary Control Party Analysis to assess corporate governance and align investments with minority shareholders' interests across multiple asset classes including common stocks, preferred stocks, and fixed-income securities.
Lead Portfolio Manager
Lydia So
Managing Partner
Moderate Conviction Bullish
Market Conviction
Assigned a conviction score of 0.65, representing moderate conviction. The managers explicitly declare they will not let market dislocations derail their long-term process, backed by detailed rationales for multiple key holdings, though the portfolio is relatively diversified.
Growth Outlook
The manager maintains a neutral to constructive outlook of 0.50, acknowledging that near-term market conditions remain highly volatile and plagued by geopolitical risks in the Middle East, while concurrently highlighting strong 22% projected earnings growth for their portfolio companies.
Risk Appetite
The risk appetite score of 0.50 reflects a balanced approach where the fund did not panic-sell Middle Eastern holdings or engage in tactical country rotations, but instead maintained its bottom-up allocation strategy while pruning elevated valuations.
Capital Deployment
A neutral score of 0.50 is assigned because the managers explicitly note that the proceeds from their two exited positions were directly recycled to fund the purchase of their three new entries, resulting in stable net capital utilization.
Forward Guidance
With a score of 0.70, the manager exhibits a selective action bias, having initiated three new positions (ASMPT, HD Hyundai Marine Solution, NARI Technology) while recycling capital from two completed exits, reflecting continuous active optimization.
Language Signal
The language signal is balanced at 0.55, as confident terms regarding structural compounding and earnings power are counter-weighted by extensive descriptions of geopolitical risks, demand destruction, and inflationary trade disruptions.
Perceived Risk
A perceived risk index of 0.75 reflects high awareness of macro threats. The managers provide a detailed discussion of the Middle East conflict, its duration uncertainty, and its direct threat to global trade routes and commodity price stability.
Opportunity Density
The opportunity density score is set to 0.70, as the manager explicitly states there are 'plenty of bottom-up opportunities in the emerging markets' and actively added three diverse new holdings during the quarter.
Time Horizon
A score of 0.80 represents a strong multi-year orientation. The commentary repeatedly references a 'long-term orientation,' tracking developments over 'longer term horizons,' and relying on the 'long-term compounding potential' of their holdings.
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