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$378.7m |
| 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
Value investing continued to outperform growth investing in the month. The path out of the pandemic remains clear if not smooth with emerging market vaccination rates trailing. Despite short-term setbacks in reopening, we believe the portfolio’s positioning towards attractively valued cyclicals is justified. It remains to be seen whether the inflation scare is transitory, with the Chinese government taking note of what it sees as overly speculative commodity trading positions. Many of the portfolio companies possess characteristics allowing operations to withstand pressure from a higher inflationary environment. The weighted average of the price targets in the portfolio shows 35% upside potential.
The bottom performers by contribution for the month were Thai Beverage and Indofood. Thai Beverage (leading alcoholic beverage producer in Thailand) reported solid quarterly results during the month. Although on-premise consumption is still affected by pandemic related restrictions, volumes are supported by its diversified portfolio including popular brands for off-premise consumption. Management postponed the pending beer unit listing, with the stock ceding some of the gains from the previous listing announcement. Indofood (Indonesian snack food manufacturer) has a long history of growing revenues and profit despite commodities cycles. Its key noodle business achieves strong margins through pricing power and dominant market share. The agricultural business offsets some commodity cost inflation in other divisions.
The top performers by contribution for the month were Embraer and Petrobras. Embraer (Brazilian aircraft manufacturer) continued its strong performance since we wrote about it in the prior month, winning new orders for regional jets and support service contracts. Sector sentiment further gained from Airbus increasing its planned 2022 production rate. Petrobras (Brazilian oil producer) reported uneventful first quarter results. More significantly, its new management team suggested a continuation of strategy after the government dismissed its prior CEO for what was seen as untimely fuel price increases. It declared the international price parity principle for domestic fuel stays intact. The company is now working with the government exploring options for a smoother fuel price adjustment process.
Capacity and flows
We are pleased to announce that we are now offering an EM ex China strategy. Alongside this we have increased capacity across both EM and EM ex China to US$1.5bn. If you would like to know more or arrange a meeting please contact clientrelations@oldfieldpartners.com.
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