| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Stewart Investors' Asia Pacific strategy delivered mixed performance in Q1 2026 as geopolitical tensions from the US-Israel military campaign against Iran weighed on markets despite earlier gains. The top contributors were AI beneficiaries Samsung Electronics, TSMC, and Silergy, which posted strong results from AI-related semiconductor demand. However, the manager trimmed these positions due to expensive valuations. Key detractors included Monotaro, which fell after competitor Askul resumed operations, and Tencent, where the manager used weakness to build a meaningful position given the company's AI strategy and unique advantages. New purchases included Realtek for connectivity solutions, Sony for its entertainment franchise, and H World for China's domestic travel growth. The manager sold lower conviction holdings including SHIFT, Glodon, and Tech Mahindra. Looking forward, they remain optimistic on Asian equities despite near-term volatility, citing attractive valuations versus developed markets, quality bias providing resilience, and long-term benefits from digital transformation and financialization across the region.
Stewart Investors maintains a quality-focused approach in Asian equities, investing in high-quality companies with strong franchises, exceptional cultures, and resilient financials that contribute to sustainable development, while taking advantage of market volatility to build positions in undervalued opportunities.
The manager remains optimistic on Asian equities outlook despite Middle East conflict volatility. They believe quality holdings should remain fundamentally resilient and that Asia should benefit from shift towards higher value services-led growth, digital transformation, and ongoing financialization. Valuations look attractive compared to developed markets like the US.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Apr 25 2026 | 2026 Q1 | 005930 KS, 0700.HK, 2379.TW, 3323.T, 6758.T, HDFCBANK.NS, HTHT, TSM | AI, Asia, China, gaming, Quality, semiconductors, technology |
005930.KS TSM 3064.T 0700.HK HDFCBANK.NS 2379.TW 6758.T HTHT |
Stewart Investors trimmed AI semiconductor winners like Samsung and TSMC due to expensive valuations while building positions in Tencent, Sony, and H World. Despite Middle East geopolitical tensions weighing on Asian markets, the manager remains optimistic on the region's quality companies, attractive valuations versus developed markets, and long-term digital transformation trends. |
| Feb 5 2026 | 2025 Q4 | 005930.KS, 0700.HK, 2379.TW, 2454.TW, 6503.T, ALC, BABA, BAJAJHLDNG.NS, BAP, BOSCHLTD.NS, CARTRADE.NS, CTAS, KEI.NS, KOTAK.NS, M&M.NS, NU, PRX.AS, QUAL3.MX, SE, TARSONS.NS, TECHM.NS, TOTVS3.SA, TSM, TUBEINVEST.NS, WEG3.SA | AI, Asia, China, emerging markets, India, long-term, Quality, semiconductors | - | Stewart Investors transitioned to FSSA management while maintaining quality-focused approach in Asian and emerging markets. Adding Chinese holdings like Tencent at attractive valuations, reducing expensive Indian cyclicals. Semiconductor holdings Samsung and TSMC drove performance on AI demand. Conservative on AI hype, focused on sustainable competitive advantages. Optimistic outlook with double-digit earnings growth expected and attractive portfolio valuations. |
| Jan 1 2025 | 2024 Q4 | 0001.HK, 005930.KS, 034730.KS, AC.TO, Gold, J36.SI, RIT.L | AI, Asia, Conglomerates, gold, Holding Companies, Philippines, semiconductors, value | - | Oldfield's global fund gained 6.7% quarterly and 29.1% year-to-date, led by gold miner Barrick and AI beneficiary Samsung. The strategy targets undervalued holding companies like Ayala Corp trading at 50% discounts to net asset value while maintaining selective AI exposure through reasonably valued stocks, avoiding bubble-territory valuations in the AI sector. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q1 |
AIAI demand has boosted semiconductor valuations to expensive levels, with companies like Samsung, TSMC, and Silergy benefiting from AI-related demand. The manager trimmed positions due to high valuations but acknowledges AI as a long-term driver for companies like Tencent. |
Semiconductors Memory HBM Foundries LLM |
SemiconductorsSemiconductor companies were top contributors with Samsung posting record profits from AI-related demand and tight supply for high-bandwidth memory chips. TSMC showed stronger than expected earnings with new capex plans to meet advanced node demand. |
Memory HBM Foundries Capex Advanced Nodes | |
ChinaThe manager initiated a meaningful position in Tencent despite recent weakness and added H World, the second largest hotel chain in China. They see long-term opportunities in China's domestic travel demand and digital transformation. |
Tencent Hotels Domestic Travel Digital | |
GamingSony was added as a new position, highlighting its leading console gaming franchise with PlayStation and synergistic business divisions. The company's content has proven popular and management is committed to disciplined capital allocation. |
PlayStation Console Content Entertainment | |
| 2025 Q4 |
AIManager believes market's assessment of AI risk differs from their own, with approximately 60% of relative underperformance attributed to positions where AI impact concerns drove stock declines. Portfolio companies deemed AI-losers declined 15% despite 10% revenue growth and 15% EPS growth, representing valuation compression rather than fundamental deterioration. |
Artificial Intelligence Disruption Valuation Technology Software |
QualityFund exclusively invests in businesses with superior characteristics including high barriers to entry, sustainable competitive advantages, and durable growth prospects. Manager notes their focus on leading businesses in sectors has been foundation of strategy since inception, though this approach was out of favor in 2025 as investors sold higher-quality investments to buy riskier stocks. |
High Quality Competitive Advantages Margins Returns Earnings | |
Small CapsStrategy of owning competitively advantaged small and medium-sized businesses remained out of favor for most of the quarter. Fund observed improvement in early December as investors showed renewed enthusiasm for high-quality stocks that populate the portfolio, with significant divergence between consistent earnings growth and recent performance creating compelling valuations. |
Small Cap Growth Valuation Russell 2000 Outperformance | |
| 2024 Q4 |
GoldGold price touching $4000 reflects market unease, with central banks holding more gold than US Treasuries for the first time since 1996. Gold now accounts for around 25% of central bank reserves, driving strong performance in gold miners like Barrick. |
Gold Miners Central Banks Reserves Inflation Hedge Safe Haven |
AISamsung benefited from recent AI capital investment commitments by OpenAI and others, gaining 60% year-to-date. The manager maintains AI exposure through Samsung and SK Inc, which trade at reasonable valuations unlike many bubble-territory AI stocks. |
Semiconductors Capital Investment OpenAI Valuation Technology | |
ValueThe manager identifies opportunities in conventional companies with listed holdings trading at substantial discounts to net asset value. Examples include holding companies like Ayala Corp trading at 50% discount versus typical 20-30% discounts. |
Holding Companies Net Asset Value Discount Conglomerates Mispricing |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Apr 25, 2026 | Fund Letters | Stewart Investors | TSM | Taiwan Semiconductor Manufacturing | Semiconductors | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | advanced nodes, AI chips, capital expenditure, semiconductor foundry, Taiwan, Technology Manufacturing | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | - | Silegry | Other | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | energy storage, Japan, Memory Controllers, semiconductor equipment, Solid State Drives, Storage Solutions | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | 3064.T | Monotaro | Internet Retail | Internet & Direct Marketing Retail | Neutral | New York Stock Exchange | B2B Platform, competitive dynamics, e-commerce, Industrial distribution, Japan, MRO products | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | 0700.HK | Tencent | Internet Content & Information | Interactive Media & Services | Bull | New York Stock Exchange | AI investment, China, digital payments, Ecosystem, LLM, Online-Gaming, social media, WeChat | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | HDFCBANK.NS | HDFC Bank | Banks - Regional | Banks | Bull | New York Stock Exchange | Deposit Franchise, financial services, India, net interest margin, private banking, underwriting, value opportunity | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | 2379.TW | Realtek | Semiconductors | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | Bluetooth, connectivity solutions, Ethernet, IC Design, network infrastructure, On-device AI, Taiwan, WiFi | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | 6758.T | Sony | Consumer Electronics | Entertainment | Bull | New York Stock Exchange | Content Creation, entertainment, Film, Gaming Console, Image-sensors, Japan, Music, PlayStation, Synergistic Operations | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | HTHT | H World | Lodging | Hotels, Restaurants & Leisure | Bull | NASDAQ | China, Cost leadership, digital infrastructure, Domestic Travel, economies of scale, Hotel Chain, Membership Program, urbanization | Login |
| Apr 25, 2026 | Fund Letters | Stewart Investors | 005930.KS | Samsung Electronics | Consumer Electronics | Semiconductors & Semiconductor Equipment | Bull | New York Stock Exchange | AI infrastructure, DRAM, High-Bandwidth Memory, memory chips, Nand, semiconductors, technology hardware | Login |
| TICKER | COMMENTARY |
|---|---|
| 005930.KS | Samsung Electronics, a leading manufacturer of memory and semiconductors. The company posted record profits thanks to soaring AI-related demand and tight supply for its high-bandwidth memory chips. Samsung started shipping its next-generation HBM 4 chip in February – having reportedly agreed higher prices compared with the previous model – positioning the company to capture a larger share of fast-growing AI server demand. On the other hand, high DRAM and NAND prices look less sustainable in the medium-term as it is already causing demand destruction in consumer electronics products. |
| TSM | Taiwan Semiconductor Manufacturing (TSMC), the leading semiconductor foundry, as recent earnings results were stronger than expected. With AI demand driving higher profits and strong guidance for the year ahead, the company announced new capital expenditure plans to try and narrow the gap between its supply of advanced nodes and customer demand. |
| 3323.T | Monotaro was the largest detractor from performance. Monotaro's sales surged late last year after a ransomware attack on rival firm Askul caused it to shut down its services, and customers switched over to Monotaro. Monotaro's valuation multiple related due to higher monthly sales growth but has since fallen back after Askul resumed operations in January 2026. |
| 0700.HK | Tencent, the biggest social media network and online gaming company in China, which declined after announcing it would reduce its share buybacks to support accelerated investment in AI. We recently met the company to discuss its AI strategy, and came away with our convictions strengthened. Tencent has been hiring experts in the field and is developing an in-house LLM. Over the longer term, we believe Tencent should benefit from AI thanks to its unique advantages: a massive user base across WeChat, games and payments; rich first-party data; and integrated advertising and content systems. We have been using the recent weakness to build up a meaningful position in the company. |
| HDFCBANK.NS | HDFC Bank, as the bank continued to face a challenging operating environment and improvement in net interest margin has been slower than expected. The resignation of the chairman also led to concerns. However, we have spoken with the management and joined a call with the new interim chairman Keki Mistry, who we respect. We feel comfortable about the governance and the quality of its franchise – in particular, its deposit franchise and underwriting culture/capability remain solid and a standout amongst banks. Valuation has declined to levels not seen before, even during the Global Financial Crisis or the Covid-19 pandemic, and we find this to be very attractive, given HDFC's leading deposit franchise and pristine balance sheet. We believe returns can improve and book value can compound at a mid-teens rate which is attractive in absolute terms. |
| 2379.TW | Realtek is an integrated circuit (IC) design company based in Taiwan which focuses on connectivity solutions such as WiFi, Ethernet and Bluetooth. While wireless technology is relatively mature and seemingly commoditized, it is in fact a key component of the network. We believe the company has not yet been able to access the network. We believe returns can improve and book value can compound at a mid-teens rate which is attractive in absolute terms. The company has a long history and good track record and should benefit from the broadening use of AI in on-device AI agents. |
| 6758.T | Sony is a leading global enterprise in entertainment business, with the #1 console gaming franchise (PlayStation), leading music and film businesses, and image-sensing chips and consumer electronics. Its content has proven to be popular hits (for example, Netflix's K-Pop Demon Hunters and the Demon Slayer movie), and its PlayStation platform helps to popularise third-party games. While the group is diverse, its business divisions operate synergistically, and the management is strongly committed to disciplined capital allocation and focused on returns and profitability. We took the opportunity to initiate a position on recent share price weakness. |
| HTHT | H World is the second largest hotel chain in China. The company has emerged as a dominant force in China's hotel industry, with a strong brand portfolio and deep operational expertise. H World is widely regarded as an industry innovator, with a strong focus on digital infrastructure and IT systems. These investments have helped it become a cost leader in the sector, while its membership programme has emerged as a key driver of organic traffic and customer retention. We believe H World has a long runway of growth as it taps into China's rising domestic travel demand, urbanisation and upgraded consumer preferences. H World's significantly larger economies of scale – and its pricing premium over the hotels in similar locations – should drive outsize returns in the long run. |
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