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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Rondure New World Fund 2023 Q3 Investor Letter | Buyside Digest

Back to Fund Profile (Rondure New World Fund)

Primary Source Intelligence • Q3 2023 Letter Analysis

Rondure New World Fund Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Rondure New World Fund. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD-4.66%

YTD-3.68%

Annualized+2.6%

Positioning StanceConstructive

Market CapSmallCap

GeographyEmerging markets, Asia

Digest Analysis

Quick Take

"Rondure's emerging markets fund underperformed in Q3 as rising US rates drew capital from international small caps toward Treasury yields. Chinese consumer weakness and small-cap liquidity challenges weighed on performance."

Executive Summary

Rondure's New World Fund declined 4.66% in Q3 2023, underperforming the MSCI EM Index's 2.90% decline, primarily due to weak Chinese consumer stocks and the fund's overweight allocation to struggling small-cap stocks. Rising US interest rates continue drawing capital away from riskier international and emerging market assets toward high-yield US Treasuries. Chinese consumers remain beleaguered following years of Zero Covid policies, though valuations may already reflect corporate pessimism. The fund's portfolio trades at significantly lower multiples than US large caps while offering higher dividend yields and stronger balance sheets. Manager Laura Geritz uses global burger economics to illustrate how currencies and stocks outside the US appear undervalued based on purchasing power parity. The fund maintains its positioning despite recent underperformance, believing current valuations offer attractive opportunities. Key catalysts needed include peak US inflation and interest rates, which would likely weaken the dollar and revive interest in international markets, and/or aggressive stimulus from China to address economic weakness.

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Institutional Meta Strategy

Meta Strategy Gauges

Algorithmic conviction, macroeconomic posture, and risk appetite signals extracted from this quarterly letter with qualitative explanations.

Signal Matrix

Market Conviction

68%

CautiousHigh

Moderate (68%)

The manager demonstrates moderate-high conviction through specific position sizing (top 10 holdings with percentages), clear thesis about valuation disparities between US and international markets, and willingness to maintain positioning despite recent underperformance. However, the significant cash position and acknowledgment of waiting for catalysts prevents this from reaching high conviction territory.

Growth Outlook

38%

BearishBullish

Neutral (38%)

The manager expresses caution about current market conditions, noting that rising US interest rates are creating headwinds for international and emerging market equities. While acknowledging attractive valuations, the tone suggests waiting for better conditions rather than immediate optimism about market prospects.

Risk Appetite

0%

DefensiveAggressive

Defensive (0%)

The fund maintains its overweight allocation to small-cap international and emerging market stocks despite recent underperformance, showing neither aggressive risk-taking nor defensive positioning. Cash is the biggest weight in the Overseas strategy, reflecting balanced but cautious positioning.

Capital Deployment

43%

De-riskingDeploying

Net Neutral (43%)

The Overseas strategy has cash as its biggest weight, reflecting cautious positioning. While the manager maintains existing positions, there's no evidence of aggressive new deployment. The emphasis on waiting for catalysts and the defensive cash positioning suggests modest de-risking rather than active deployment.

Forward Guidance

38%

CautiousExpansionary

Neutral (38%)

The manager explicitly states they are waiting patiently for catalysts (peak rates, China stimulus) before expecting improved performance. The language suggests a holding pattern rather than active deployment, with phrases like 'continue to wait patiently and prudently.'

Language Signal

38%

BearishBullish

Balanced (38%)

The letter contains more cautious and risk-focused language than bullish terms. Words like 'struggling,' 'disappointing,' 'meek to bleak,' 'tough place to be,' and 'headwinds' outweigh positive language about opportunities and attractive valuations.

Perceived Risk

65%

Low RiskElevated

Elevated Risk (65%)

The manager identifies multiple specific risks including rising US rates drawing capital away, inflation pressures, China's economic weakness, and small-cap liquidity challenges. These risks are discussed in detail with concrete examples and potential negative scenarios, indicating moderate-high risk perception of the current environment.

Opportunity Density

70%

ScarceAbundant

Abundant (70%)

Despite current headwinds, the manager sees attractive opportunities in international and emerging markets based on valuation metrics, currency undervaluation, and specific company fundamentals. The letter discusses multiple countries and sectors with good companies, suggesting a reasonably rich opportunity set once catalysts emerge.

Time Horizon

75%

Short-TermLong-Term

Decade+ (75%)

The manager emphasizes patience and waiting for catalysts without urgency, using language like 'wait patiently and prudently' and discussing multi-year themes like currency cycles and economic transitions. The willingness to hold through current underperformance suggests a multi-year investment horizon, though not permanent capital timeframes.