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 Value Fund achieved a 3.00% return in the first quarter of 2026, significantly outperforming its emerging markets benchmarks, which registered negative returns. This relative success occurred despite high volatility caused by the U.S. and Israeli strikes on Iran, which led to the closure of the Strait of Hormuz and hit energy-dependent Asian markets. Positive performance was driven by corporate capital recycling, notably at Samsung SDI, as well as robust returns from Latin American financial institutions like Credicorp and Itaú Unibanco. Conversely, India was the largest source of negative returns, dragged down by macroeconomic concerns and company-specific issues at UPL and HDFC Bank. In terms of portfolio activity, the fund exited its nine-year-old position in China Yangtze Power due to growth saturation and fully reallocated those funds into HD Hyundai Marine Solution, a capital-light maritime aftermarket provider. The manager remains cautious of optically cheap cyclical stocks, emphasizing long-term resilience and balance sheet strength over near-term earnings.
True value investing in emerging markets requires distinguishing between optical cheapness and sustainable competitive advantages that can withstand inevitable macroeconomic shocks.
The investment landscape remains clouded by significant geopolitical risk and macro volatility, including blockades and regulatory surprises. In such an environment, the manager prioritizes businesses with sustainable competitive advantages, conservative balance sheets, and long-duration cash flows over optically cheap value plays.
As of Mar 31, 2026
Andrew Foster serves as founder and Co-Chief Investment Officer of Seafarer Capital Partners, having founded the firm in 2011 with Michelle Foster (CEO). Paul Espinosa was promoted to Co-Chief Investment Officer effective August 28, 2025, and has been the Lead Portfolio Manager of the Seafarer Overseas Value Fund since its inception in 2016. Espinosa has 29+ years of experience in fundamental research and investing in global emerging markets, with previous positions at Legg Mason (2006-2012) in London, Citigroup Asset Management (1999-2005) in Stamford, J.P. Morgan Investment Management (1997-1999) in New York, and Salomon Brothers (1996-1997) in New York. He holds a Chartered Financial Analyst (CFA) certification, is bilingual in English and Spanish, and graduated from Brown University in 1996. The firm is 100% employee-owned and maintains shared decision-making with mutual veto rights between the Co-CIOs.
The Fund seeks to provide long-term capital appreciation by investing primarily in securities of companies located in developing countries. The Fund's portfolio is comprised of securities identified through a bottom-up security selection process based on fundamental research. The fund employs a value-oriented investment strategy focusing on securities priced below their intrinsic value. The approach distinguishes between price and value, focusing on businesses with sustainable competitive advantages that can generate economic value over the long term and with resiliency to withstand ups and downs. The investment philosophy emphasizes that value investing is not a short-term trading strategy and maintains a disciplined, fact-based approach focused on structural growth, earnings power, and diversification to navigate geopolitical risks and market volatility.
Lead Portfolio Manager
High Conviction Bullish
Market Conviction
A score of 0.80 represents high conviction. The portfolio is highly selective, features long holding periods (e.g., nine years for Yangtze Power), and highlights named, high-conviction positions with clear capital allocation theses.
Growth Outlook
A score of 0.35 is cautious. The manager heavily discusses systemic risks surrounding the Strait of Hormuz, inflationary threats, and warns against buying optically cheap emerging market cyclical businesses.
Risk Appetite
Risk appetite is scored at 0.50. The portfolio maintains its core positions and has not entered a defensive cash-hoarding mode, yet it is avoiding cyclical, highly levered assets in favor of quality compounders.
Capital Deployment
The score of 0.50 is assigned because the fund kept its cash levels stable, matching one new addition (HD Hyundai Marine) with one equal exit (China Yangtze Power), representing a net-neutral deployment activity.
Forward Guidance
The score of 0.50 indicates a neutral stance. The manager advises letting fundamentals and valuations act as navigational beacons but does not detail any aggressive future buying or selling plans.
Language Signal
The language signal is 0.50. While the commentary highlights several positive stock restructurings and earnings tailwinds, it balances this with extensive discussion regarding the 'fog of war' and transit chokepoints.
Perceived Risk
A score of 0.75 signifies high perceived risk. The text details a direct geopolitical conflict in the Middle East and the closure of a strait responsible for 20% of global oil/gas transit.
Opportunity Density
Opportunity density is scored at 0.45. The manager specifically notes that the broad market's tepid response to the geopolitical crisis has failed to yield many highly discounted value opportunities.
Time Horizon
A score of 0.90 represents a multi-decade/long-term horizon. The manager explicitly rejects evaluating businesses based on 'the next four quarters of earnings' and instead focuses on lifetime discounted cash flows.
Top Conviction Themes
Key Catalysts
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