Seafarer Capital Partners
Market insights and commentary from Seafarer Capital Partners.
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Equities
Research
Seafarer Capital PartnersEquities
Understanding Chinese Competition | Seafarer Funds
Seafarer's Nicholas Borst presents a multi-part research series examining how the interplay between China's private sector and state-directed industrial policy shapes competition, corporate profitability, overcapacity, and export competitiveness. The series covers topics ranging from state-owned enterprises' outsized profit share to the global competitive shock from China's state-led industries and the uncertain outlook for Chinese exports under rising tariffs.
Seafarer Capital PartnersEquities
Emerging Markets Briefing, February 2025 | Seafarer Funds
Seafarer argues that the traditional GDP-growth rationale for emerging markets investing is weakening, and proposes a reframing around non-USD dividend income, company-level fundamentals over country exposures, and concentrated bottom-up strategies. The piece outlines three investment principles for the next decade: diversification into EM income streams, a company-not-country lens, and disciplined active management to exploit persistent mispricings.
Seafarer Capital PartnersEquities
Revisiting the Seven Sources of Value in Emerging Markets | Seafarer Funds
Seafarer's Value team reviews eight years of practical experience managing the Seafarer Overseas Value Fund, examining which of seven distinct EM value sources (balance sheet liquidity, breakup value, management change, deleveraging, asset productivity, structural shift, and segregated market) proved most productive and what lessons were learned. The paper emphasizes that sustainable competitive advantages, disciplined capital allocation, and long holding periods - rather than low multiples alone - are central to avoiding value traps in emerging markets.
Seafarer Capital PartnersFixed Income
Surge in Dollar Convertible Bonds From Chinese Companies | Seafarer Funds
Seafarer Funds examines the unprecedented wave of large U.S. dollar-denominated convertible bond issuances by major Chinese companies in 2024, including Alibaba's $5 billion deal - the largest globally since 2008. The commentary explores four possible explanations - dollar funding needs, capital markets opportunism, regulatory changes, and capital account restrictions - with the author flagging the last as the most concerning signal for investors.
Seafarer Capital PartnersMulti-Asset
A Balance Sheet Approach to China | Seafarer Funds
Seafarer's Nicholas Borst analyzes China's economic risks and financial resilience through a national balance sheet framework, examining the interconnected assets and liabilities of households, corporations, financial institutions, and government. The series identifies weak balance sheets among state-owned enterprises, local governments, and property developers as China's most pressing financial risks, and evaluates policy options for repairing them without broader economic damage.