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Quarter	Letter Date	Fund Name	QTD	YTD	Tickers	Themes	Quick Take

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Mobius Capital Partners 2026 Q2 Investor Letter | Buyside Digest

Back to Fund Profile (Mobius Capital Partners)

Primary Source Intelligence • Q2 2026 Letter Analysis

Mobius Capital Partners Quarterly Analysis

Buyside Digest is not affiliated with, and does not endorse, Mobius Capital Partners. This analysis is provided for institutional research purposes only and is not investment advice.

Fund Returns

QTD+29.4%

Positioning StanceNEUTRAL

Market CapMid Cap

GeographyAsia, Emerging markets, LatAM

Digest Analysis

Quick Take

"Outperforming by 10.4 percentage points through concentrated exposure to Asian AI supply chain bottlenecks and Indian structural growth."

Executive Summary

The Mobius Emerging Markets Fund delivered a 29.4% return in Q2 2026, outperforming the MSCI Emerging Markets Mid Cap Index by 10.4 percentage points. Performance was driven by continued repositioning toward the AI infrastructure theme, with the fund building concentrated exposure across the Asian technology supply chain, particularly in Taiwan and South Korea. The investment approach focuses on identifying bottleneck businesses with irreplaceable demand, limited competition, and high switching costs across semiconductors, memory, data center power infrastructure, and inference workloads. India was a significant contributor, with the fund increasing exposure during earlier market weakness based on conviction in the country's long-term structural drivers including domestic demand, infrastructure investment, and financialisation of household savings. The portfolio was actively managed during the quarter, with capital recycled from positions approaching intrinsic value into new opportunities offering more attractive risk-adjusted returns. Top contributors included King Slide, SK Square, and Elite Material, all benefiting from AI infrastructure demand. The fund remains positioned across 29 holdings in 12 countries, with 36.6% in technology, 27.2% in India, and 25.6% in Taiwan.

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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

72%

CautiousHigh

High Conviction (72%)

The fund holds 29 positions with the top 10 representing 46.7% of the portfolio, indicating moderate concentration. The manager provides detailed, specific investment theses for key holdings including King Slide, with explicit discussion of competitive advantages, switching costs, and long-term positioning. The letter demonstrates deep research including on-the-ground visits to India and Vietnam, and the manager is willing to increase exposure during market weakness based on fundamental conviction. However, the portfolio is not extremely concentrated (29 holdings vs. 5-10 for highest conviction funds), and the manager actively trims positions approaching intrinsic value rather than holding indefinitely, preventing a score above 0.75.

Growth Outlook

65%

BearishBullish

Bullish (65%)

The manager views the AI infrastructure buildout as a structural, multi-year opportunity representing a paradigm shift from consumer electronics cycles. Language is constructive around hyperscaler capex trajectories, Asian supply chain positioning, and India's long-term investment case. However, the manager acknowledges geopolitical uncertainty, monetary policy volatility, and evolving AI business model risks, preventing a more bullish score. The tone is opportunity-focused but measured, with explicit recognition of market volatility and the need for selectivity.

Risk Appetite

55%

DefensiveAggressive

Balanced (55%)

The fund is 93.4% invested with 29 holdings, indicating high net exposure. However, the manager actively reduced positions where share prices approached intrinsic value and reallocated away from areas with increased business model uncertainty (software), demonstrating disciplined risk management rather than maximum risk-on positioning. The portfolio is concentrated in high-conviction themes (AI supply chain, India) but the manager is taking profits and rotating rather than adding leverage or increasing concentration further.

Capital Deployment

15%

De-riskingDeploying

De-risking (15%)

The fund is 93.4% invested, representing high but not maximum deployment. During the quarter, the manager engaged in active rotation, selling positions that approached intrinsic value and redeploying into new opportunities. This is capital rotation rather than net deployment, as there is no evidence of cash levels declining or overall exposure increasing. The manager added new positions (GNG Electronics, HD Hyundai Marine Solution) and increased exposure to India, but simultaneously reduced semiconductor positions following appreciation, resulting in near-neutral net activity.

Forward Guidance

45%

CautiousExpansionary

Neutral (45%)

The manager states that investment decisions remain driven by company fundamentals rather than short-term market movements and emphasizes continued focus on identifying exceptional businesses. However, there is no explicit language about deploying additional capital or scaling positions. The tone is one of active monitoring and selective rotation rather than aggressive deployment. The manager recycled capital from appreciated positions into new opportunities but did not indicate raising overall exposure or deploying cash reserves.

Language Signal

60%

BearishBullish

Balanced (60%)

The letter contains substantial bullish language around AI infrastructure opportunities, structural growth drivers, bottleneck businesses, attractive valuations, and compelling opportunities across India and the Asian supply chain. Risk language is present but focused on specific areas (software business models, geopolitical uncertainty, market volatility) rather than dominating the narrative. The balance tilts positive with terms like strong performance, robust demand, favorable pricing, and well positioned appearing frequently, but the manager avoids hyperbolic language and maintains analytical tone throughout.

Perceived Risk

45%

Low RiskElevated

Moderate Risk (45%)

The manager acknowledges geopolitical developments, trade policy uncertainty, monetary policy volatility, and broader macroeconomic uncertainty contributing to market volatility. Specific risks are identified around AI business model disruption in software and investor positioning volatility in memory stocks. However, these risks are discussed in measured terms as factors to monitor and incorporate into analysis rather than systemic threats. The manager devotes more space to opportunity discussion than risk discussion, and explicitly states that fundamentals remain strong despite volatility. Risk acknowledgment is present but not central to the letter's narrative.

Opportunity Density

75%

ScarceAbundant

Abundant (75%)

The manager describes a rich opportunity set across multiple themes and geographies, including the Asian AI supply chain, Indian structural growth, data center power infrastructure, and memory markets. The letter discusses adding new positions, expanding the pipeline of prospective investments following research trips, and finding compelling opportunities across technology, industrials, and financials. Language emphasizes breadth of opportunities available across emerging markets and the flexibility of the benchmark-agnostic approach. The manager is actively finding new ideas and deploying capital into them, indicating abundant rather than scarce opportunities.

Time Horizon

68%

Short-TermLong-Term

Multi-Year (68%)

The manager emphasizes focus on identifying exceptional businesses with the ability to compound value over many years and durable competitive advantages. The AI infrastructure thesis is framed as structural and multi-year rather than cyclical. However, the manager also actively trims positions approaching intrinsic value and rotates capital based on near-term share price appreciation, indicating a willingness to harvest gains rather than hold indefinitely. The time horizon is multi-year for core themes but with active management around valuation, placing it in the moderate-to-long range rather than permanent capital territory.