Insight into the Fund's Latest Portfolio Adjustments and Strategic Moves
Matthews Emerging Markets Small Companies Fund (Trades, Portfolio), known for its strategic investments in Asia's vibrant small-cap sector, recently disclosed its portfolio updates for the third quarter of 2024. The fund, which primarily targets small companies with robust growth potential in Asia excluding Japan, follows a meticulous bottom-up, fundamental investment philosophy. This approach focuses on long-term performance, leveraging extensive on-ground research including over 2,000 company meetings annually to uncover undervalued gems.
Portfolio Additions Highlight Diverse Market Opportunities
During the third quarter, Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) expanded its portfolio by adding five new stocks. Notably, the fund invested in Proya Cosmetics Co Ltd (SHSE:603605, Financial), purchasing 511,156 shares valued at ¥7.98 million, making it the largest new addition by value. Following closely, Security Bank Corp (PHS:SECB, Financial) and C&C International Co Ltd (XKRX:352480, Financial) were also significant new entries, emphasizing the fund's diverse geographic and sectoral investment approach.
Significant Increases in Existing Holdings
The fund also aggressively increased its stakes in several key holdings. A remarkable increase was seen in Flat Glass Group Co Ltd (HKSE:06865, Financial), where the fund boosted its position by 2,596,000 shares, resulting in a 34.07% increase in share count. Another major increment was in PT Summarecon Agung Tbk (ISX:SMRA, Financial), with a staggering 730.01% increase in shares held, underscoring the fund's confidence in these companies' growth prospects.
Strategic Exits from Selected Investments
Conversely, Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) exited seven positions entirely. The divestment from Peijia Medical Ltd (HKSE:09996, Financial) and Cebu Air Inc (PHS:CEB, Financial) were among the notable exits, aligning with the fund's strategy to optimize portfolio performance and mitigate risks.
Notable Reductions in Portfolio Holdings
The fund made significant reductions in several holdings, with Shriram Finance Ltd (NSE:SHRIRAMFIN, Financial) witnessing the largest cut. The fund reduced its stake by 301,967 shares, a 23.5% decrease, impacting the portfolio by -1.5%. Despite this reduction, Shriram Finance Ltd remains a top holding, reflecting the fund's recalibrated but ongoing confidence in the stock, which has seen a substantial return of 54.34% year-to-date.
Comprehensive Portfolio Overview
As of the third quarter of 2024, the fund's portfolio comprised 77 stocks, with top holdings in Shriram Finance Ltd, Bandhan Bank Ltd, and Full Truck Alliance Co Ltd, among others. The investments span across 10 major industries, with significant allocations in Consumer Cyclical and Technology sectors, illustrating a broad yet focused investment horizon.
This detailed portfolio reshuffling highlights Matthews Emerging Markets Small Companies Fund (Trades, Portfolio)'s active management approach and its commitment to capitalizing on Asia's economic evolution through strategic, long-term investments in small-cap companies.
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.
