Overstone Emerging Markets Equity Fund
A high conviction global emerging markets value equity strategy which combines fundamental bottom-up research with valuation discipline.
Investment objective
The Fund will attempt 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 equities of companies from emerging markets and from other markets where it can be demonstrated by the Investment Manager that the company concerned is overwhelmingly an emerging market related company.
Fund particulars
Launch date | 03 November 2008 |
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Fund size | US$52.9m |
Domicile | Ireland |
Structure | QIAIF |
Base currency | USD |
Dealing | Daily |
Min. investment | €100,000 |
Benchmarks | 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
Following a strong start to the year, February saw the gains evaporate. A ‘stronger for longer’ US economy led to negative comments on US monetary policy and a bounce in the US dollar. Chinese equities were weaker on investor expectations for the re-opening trade, increased regulatory concerns ahead of the Party Congress, and more heated exchanges between US and China (in part over an alleged spy balloon). The upside potential for the portfolio is a little over 75% as measured by the weighted average of the company price targets in the portfolio.
The bottom performers by contribution in the month were Alibaba, LG H&H, and Thai Beverage. Expectations for the strength of the post-Covid re-opening trade in China were tested by investors, as they looked for real-world evidence, against the release of backward-looking company quarterly results (that still reflected lockdowns). Alibaba (Chinese e-commerce provider) and LG H&H (Korean cosmetics manufacturer) were impacted here, but we still believe they both remain beneficiaries of the ongoing bounce back in the Chinese consumer. Thai Beverage (leading Thai alcoholic beverage producer) continues to see solid growth in beer and spirits related to on-premise trade, and a pull-back in home consumption of spirits that benefitted in the Covid years. Cost pressures have been alleviated with price increases. The company has a strong franchise in Thailand with around 90% market share in spirits and a duopoly position in beer. It trades at 14 times earnings, which is approximately half the valuation of Asian peers.
The top performers by contribution in the month were Ternium and ASE Technology. Ternium (Latin American steel producer) is benefitting from a bounce back in US steel prices, but also from the ‘near shoring’ of manufacturing to Mexico. It is a low-cost producer of steel and a beneficiary of Mexican growth and through steel import substitution. ASE Technology (Taiwanese semiconductor testing & packaging provider) reported results during the month accompanied by guidance which, although reflecting an expected slowdown in utilisation rates affecting near-term margins, were stronger than expected into the second half of the year. Semiconductor packaging has become an integral part of the continuous performance enhancement of systems of integrated chips. This trend remains encouraging with strong new demand sources from the auto- and Industrial sectors. A market share nearly double that of its nearest competitor positions it well from a cost and advanced technology perspective. The high dividend pay-out ratio translates to a dividend yield near 7%, further supporting an attractive stock valuation.
Commentary
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 7% of the Fund and cash dividend of 1%. We continue to monitor the situation closely.
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