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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Rondure New World Fund 2024 Q1 Investor Letter | Buyside Digest

Back to Fund Profile (Rondure New World Fund)

Primary Source Intelligence • Q1 2024 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-1.23%

YTD-1.23%

Annualized+2.4%

Positioning StanceConstructive

GeographyEmerging markets, Asia

Digest Analysis

Quick Take

"Emerging markets fund suffered from diversification in AI-concentrated quarter but positioned for broadening rally. Taiwan Semiconductor and AI semiconductors dominated returns while manager's diversified portfolio lagged."

Executive Summary

Rondure's emerging markets strategy underperformed in Q1 2024 as extreme market concentration in AI semiconductors worked against their diversified approach. Four AI stocks contributed 97% of MSCI EM returns, with Taiwan Semiconductor alone representing 82% of IT sector performance. The manager believes this narrow rally will broaden as emerging market AI stocks trade at better valuations than US peers, with Asian AI giants valued at 12-19x earnings versus Nvidia at 35x. Key catalysts include inventory corrections ending, smooth Taiwan and Indonesia elections removing political risk, China behaving less destructively, and South Korea pursuing governance reforms. India offers strong structural growth despite rate headwinds affecting HDFC Bank. The portfolio maintains Taiwan Semiconductor as the largest position while building positions in companies with weak near-term fundamentals but improving earnings momentum. Risks include US hard landing, renewed inflation, and Nvidia's growth deceleration potentially dragging down all AI stocks rather than enabling broadening.

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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%)

Manager demonstrates moderate-high conviction through concentrated position in Taiwan Semiconductor as largest holding, specific thesis on emerging market AI broadening, and willingness to build positions despite near-term weakness. However, diversified approach and hedged language around timing caps conviction below high levels.

Growth Outlook

25%

BearishBullish

Bearish (25%)

The manager expresses cautious optimism about emerging markets breaking out on their own volition and sees broadening opportunities, but acknowledges current challenging conditions with extreme concentration working against diversified strategies.

Risk Appetite

15%

DefensiveAggressive

Defensive (15%)

Portfolio is defensively positioned with diversification rather than concentration in AI leaders. Manager is selectively building positions but waiting to add to others like HDFC Bank, showing measured risk appetite.

Capital Deployment

25%

De-riskingDeploying

De-risking (25%)

Manager is selectively building some names with weak fundamentals and holding positions like HDFC Bank while waiting to add, indicating modest deployment activity but no aggressive capital deployment or cash level changes mentioned.

Forward Guidance

35%

CautiousExpansionary

Cautious (35%)

Manager is actively building some names with weak short-term fundamentals and sitting patiently for earnings momentum to shift in their favor, showing selective deployment bias toward emerging market opportunities.

Language Signal

20%

BearishBullish

Bearish (20%)

Language is balanced with more opportunity-focused terms like broadening, attractive valuations, and spring-loaded growth, but tempered by risk discussions and acknowledgment of current headwinds.

Perceived Risk

72%

Low RiskElevated

Elevated Risk (72%)

Manager identifies multiple specific risks including US hard landing, inflation resurgence, geopolitical tensions, and Nvidia's potential impact on AI stocks. Detailed discussion of macro risks and their potential impacts on portfolio companies indicates elevated risk perception.

Opportunity Density

65%

ScarceAbundant

Abundant (65%)

Manager sees selective opportunities in emerging markets with many AI stocks at attractive valuations, structural improvements in multiple countries, and earnings acceleration prospects. Describes plenty of bright lights in EM but acknowledges need for selectivity.

Time Horizon

70%

Short-TermLong-Term

Decade+ (70%)

Manager demonstrates multi-year perspective with focus on structural growth in India, long-term potential of HDFC Bank unchanged, and building positions for earnings momentum shifts as the year progresses. No urgency expressed around catalyst timing.