Doddington Emerging Markets Fund LLC
A high conviction global emerging markets value 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.
Fund particulars
Launch date | 01 July 2011 |
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Fund size | US$140.1m |
Domicile | USA |
Structure | LLC |
Base currency | USD |
Dealing | Monthly |
Min. investment | US$3,000,000 |
Management fees | 0.90% per annum |
TER | 1.25% 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 Markets Equity Strategy
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Commentary
The bottom performers by contribution in the month were Samsung Electronics, Alibaba, and Lee & Man Paper. Samsung Electronics (Korean consumer electronics) moves closer to the inflection point for the semiconductor upcycle. To some extent investors have anticipated the improvement, but the low valuation level suggests that there remains a wait-and-see approach by the broader market looking beyond the current inventory cycle. Samsung Electronics is to become a meaningful supplier of HBM chips for AI and HPC use into next year – an area in which it has lagged its main competitor SK Hynix. The firm now trades on a price to book ratio of 1.2, that is below its long-term average historic valuation.
The weak share price performance for Alibaba (Chinese e-commerce) and Lee & Man Paper (Chinese packaging) was primarily due to ongoing weakness across the Chinese economy. While expectations for any proper recovery are now clearly muted, a rate cut and signalling from the government all point towards an active effort by policy makers to stimulate activity. Alibaba is extremely lowly valued at just 10 times net profits. Adjusting this for the year-end net cash of US$48bn (market capitalisation is US$235bn), the valuation drops to just eight times net profits. Lee & Man Paper trades on a price to book ratio of 0.4 and at a low to its historic valuation range.
The top performers by contribution in the month were Buenaventura, First Pacific, and Infosys. Buenaventura (Peruvian miner) is benefiting from improved investor sentiment due to the receipt of environmental permits for two of its mines (Uchucchacua and Yumpag) to re-start operations that had been suspended since 2021. The current share price reflects the market value of its stake in the Cerro Verde copper mine only, so any good news on its own direct mines should lift the share price. First Pacific (Hong Kong listed holding company) had good results in the month highlighting the strength of its core holdings in Indofood, Metro Pacific, and PLDT. The tender offer for Metro Pacific is a further boost and shows that management are keen to improve shareholder returns. First Pacific trades on a 55% discount to its net asset value (NAV) despite most of its holdings being solid listed companies in Indonesia and the Philippines.
The top performers this year so far have been in Latin America – Petrobras, Embraer, and Ternium; and the bottom performers focused on China – LG H&H and Lee & Man Paper. That does leave our Chinese holdings with sizeable upside potential to their price targets in the instance that stimulus efforts feed through into the real economy. As reported last month we have added Autohome (the leading online auto platform in
Commentary
China) on a compelling valuation with net cash equivalent to almost 90% of the market capitalisation and at 12 times 2023 earnings.
The upside potential for the portfolio is almost 80% as measured by the weighted average of the company price targets in the portfolio.
Russian holdings
Please note that on 3rd March 2022 the Fund’s investment in Lukoil ADR listed on the London Stock Exchange (LSE) was suspended from trading. Our Valuation Committee considered it was in the Fund’s best interests that the holding of Lukoil ADR be fair value priced (FVP) at zero. In June 2022, we elected for the holding to be converted into local shares (Lukoil PJSC).
Given the current international sanctions on Russian securities and cash balances, we believe that if lifted and the Fund was able to access the local market, the holding in Lukoil PJSC (with a current FVP of zero) would represent 9% of the Fund and cash dividend of 1.3%. On 22nd August 2023 a Reuters article suggested that Lukoil was planning to repurchase 25% of its shares from foreign shareholders. The repurchase price would be at least a 50% discount from the quoted price. We continue to monitor the situation closely.
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