FSAC’s Emerging Market Fund Returns in 2013

Here is a quick update for the FSAC’s Emerging Market Fund performance so far in Winter Term. We currently have 15 holdings in our fund, with 12 of these stocks are generating positive returns for us. Top 5 performance drivers are 1. Zhongpin, engaging in the processing and distribution of meat and food products primarily in the People’s Republic of China. 2. Tencent, providing Internet value-added services, mobile and telecommunications value-added services, and online advertising services primarily in the People’s Republic of China. 3. Copa, engaging in the air transportation of passengers, cargo, and mail in Latin America. 4. Indosat, a telecommunication service provider in Indonesia. 5. SK telecom, also a telecommunication service provider but based in South Korea.

One of our holdings, New Oriental Education and technology (EDU), has a negative 35.51% return. After some heated debate on whether or not we should sell the stock, and research into last quarter’s earnings, we decided to keep it in the portfolio. This decision was largely based on strong earnings, and a continued demand for learning centers in 2nd and 3rd tier cities in China. Ultimately, we took a long term perspective hoping that the solid earning will drive the equity value up, and external liabilities (an SEC investigation on the corporate structure) will quickly come to and end.

Overall, we are proud to say that the fund is performing really well (a 11.76% investment return), and it is really great to apply the financial skills we learned in classes to manage this fund. Please contact the portfolio managers: Mohammad Alkhamis and Mavis Yu if you’ would like to receive a more detailed weekly fund performance report.

Mohammad Alkhamis: malkhami@uoregon.edu

Mavis: hanchiao@uoregon.edu

Investment return for EMF as of February 6, 2013

 

Mavis Yu, FSAC, Class of 2013

 

Written by Mavis Yu

MBA Candidate 2013 University of Oregon Lundquist College of Business Finance and Securities Analysis Center Graduate Teaching Fellow – FSAC Facebook: http://www.facebook.com/UoFinanceSecuritiesAnalysisCenter 503-860-0726