Doddington Emerging Markets Fund LLC
A high conviction global emerging market equity strategy which combines fundamental bottom-up research with valuation discipline.
Investment objective
The Fund seeks to achieve over the long term a total return in excess of that of the MSCI Emerging Markets Index (with net dividends reinvested) through investment in a concentrated portfolio of 15-25 equity securities of companies in emerging markets, and from other markets where it can be demonstrated by the Investment Advisor that the company concerned is overwhelmingly an emerging market related company. The approach is focussed on valuations and bottom-up fundamental research of individual companies.
Fund particulars
| Launch date | 01 July 2011 |
| Fund size | US$420.0m |
| Domicile | USA |
| Structure | LLC |
| Base currency | USD |
| Dealing | Monthly |
| Min. investment | US$3,000,000 |
| Management fees | 0.90% per annum |
| TER | 1.03% per annum |
| Benchmark | MSCI Emerging Markets |
Portfolio manager
Tom Taylor
Tom Taylor
Tom joined OP in June 2008 from Alta Advisers Ltd. In 1999 he joined Alta Advisers, then headed by Richard Oldfield, and was responsible for managing emerging market equities portfolios. Before this he was an investment analyst at Adam & Co., based in Edinburgh. He graduated from St. Andrews University and Stirling University. He manages the emerging market portfolios and contributes to the overall investment selection.
Latest publications
Latest publications
Emerging Market Equities Strategy
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Commentary
The valuation case for emerging market equities remains attractive, and the MSCI Emerging Markets Index continues to trade comfortably below its longer term historic average valuation. Value investing in emerging market equities continues to have a tough year. The backdrop for emerging markets is still dominated by global monetary policy actions, numerous political issues, and ongoing trade disputes leading to fallout across the global economy and equity markets.
The bottom performers by contribution in the month were Petrobras, Telkom Indonesia, and Thai Beverage. Petrobras (Brazilian oil producer) announced the outline for its five-year business strategy, and some investors were disappointed with the near-term production guidance and increase in capital expenditure. Telkom Indonesia (Indonesian telecom operator) is the leading operator in Indonesia in both mobile and fixed line; with a superior network and a strong balance sheet it is well placed in this growing telecom market. The third quarter results showed competition remains benign and management are executing well. Thai Beverage (the leading producer of alcoholic beverages in Thailand) announced at month-end that it will look into an initial public offering of its beer business. Historically its beer business in Thailand has been a drag on the company, but of late it has been turning around, and the company’s beer exposure has increased in scale with the acquisition in Vietnam of Sabeco. This announcement should help shine a light on the beer division that has a forty percent market share in Thailand.
The top performers by contribution in the month were Lee & Man Paper and Ternium. Cyclical stocks were in favour during the month as valuations had become depressed. Lee & Man Paper (Chinese containerboard manufacturer) has seen price hikes by the large paper manufacturers in China and this looks sustainable during the holiday season with demand holding up and inventory levels low. Ternium (Latin American steel producer) had disappointing third quarter results with more difficult economic conditions in Mexico and Argentina. Ternium is used to dealing with difficult environments, but trade disputes and politics are a lingering worry for the stock.
Total assets for the emerging markets strategy are now slightly over US$1billion, which is our capacity limit. If you are interested in making a new investment or adding to an existing holding, we therefore request that you contact us to discuss this.