Insightful Portfolio Adjustments in Q2 2024 Highlight Strategic Moves
The Matthews Emerging Markets Small Companies Fund (Trades, Portfolio), known for its strategic investments in Asia's vibrant small-cap sector, has recently disclosed its N-PORT filing for the second quarter of 2024. The fund primarily targets small companies in Asia, excluding Japan, focusing on those with the potential for sustainable growth. By employing a bottom-up, fundamental investment philosophy, the fund seeks long-term performance through investments in companies with solid business models, quality management, and sound financial health. This approach is complemented by the fund's commitment to deep, on-the-ground research, involving numerous company meetings annually to scout for underappreciated market opportunities.
New Additions to the Portfolio
During the second quarter of 2024, Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) expanded its portfolio by adding three new stocks:
- We Buy Cars Holding Ltd (JSE:WBC, Financial) with 5,938,218 shares, making up 1.24% of the portfolio, valued at R8.68 million.
- Astor Enerji AS (IST:ASTOR, Financial) with 2,690,712 shares, representing 1.12% of the portfolio, valued at ₺7.85 million.
- Old Mutual Ltd (JSE:OMU, Financial) with 11,460,357 shares, accounting for 1.11% of the portfolio, valued at R7.77 million.
Significant Increases in Existing Positions
The fund also increased its stakes in 14 stocks, with notable increases in:
- Legend Biotech Corp (LEGN, Financial), where an additional 227,978 shares were purchased, bringing the total to 521,506 shares. This adjustment increased the share count by 77.67% and had a 1.44% impact on the current portfolio, with a total value of $23,097,500.
- M31 Technology Corp (ROCO:6643, Financial), with an additional 136,802 shares, bringing the total to 644,057. This adjustment represents a 26.97% increase in share count, valued at NT$22,382,010.
Complete Exits
In a strategic move, the fund completely exited its position in one company:
- Zhejiang Hangke Technology Incorporated Co (SHSE:688006, Financial), selling all 439,733 shares, which had a -0.19% impact on the portfolio.
Reductions in Key Holdings
Conversely, the fund reduced its positions in 58 stocks, with significant reductions in:
- Shriram Finance Ltd (NSE:SHRIRAMFIN, Financial) by 202,481 shares, resulting in a -13.61% decrease in shares and a -0.83% impact on the portfolio. The stock traded at an average price of ₹2,514.1 during the quarter and has returned 37.74% over the past three months and 58.59% year-to-date.
- Saudi Tadawul Group Holding Co (SAU:1111, Financial) by 73,502 shares, resulting in a -25.83% reduction in shares and a -0.78% impact on the portfolio. The stock traded at an average price of ï·¼251.23 during the quarter and has returned 2.54% over the past three months and 30.92% year-to-date.
Portfolio Overview
As of the second quarter of 2024, the Matthews Emerging Markets Small Companies Fund (Trades, Portfolio)'s portfolio included 79 stocks. The top holdings were 6.38% in Shriram Finance Ltd, 5.86% in Bandhan Bank Ltd, 3.47% in Phoenix Mills Ltd, 3.46% in Full Truck Alliance Co Ltd, and 3.3% in Hugel Inc. The holdings are mainly concentrated across 10 of the 11 industries, including Technology, Financial Services, Industrials, and Healthcare, among others.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
