Portfolio Overview
The Emerging Markets Portfolio seeks to capture growth opportunities across developing economies, with a focus on companies listed on major exchanges in these regions. As of August 13, 2026, the portfolio holds ten positions spanning Brazil, Taiwan, India, South Korea, Mexico, and the United States (for Latin American exposure).
Performance Highlights
Embraer (EMBJ) continues to be the standout performer, up 37.9% since its pick in June. The Brazilian aerospace company has benefited from strong demand and operational improvements. This gain provides a significant cushion to the portfolio’s overall performance.
On the downside, AP Memory (6531.TW) has fallen 34.8%, reflecting weakness in the memory chip sector and company-specific challenges. This position is the largest drag on the portfolio.
Other positions show modest declines, including HDFC Bank (-9.6%), Reliance Industries (-10.0%), and Grupo Aeroportuario del Pacífico (-6.1%). These are within normal volatility for emerging market equities.
Regional and Sector Diversification
The portfolio is well-diversified across regions: Latin America (Embraer, WEG, MercadoLibre, PAC), India (HDFC, Reliance, TCS, Bajaj Finance), and Asia (AP Memory, Samsung). This spread reduces country-specific risk.
Sector exposure includes aerospace, technology, financials, consumer, and industrials, providing balance across cyclical and defensive areas.
Risk Considerations
Key risks include concentration in India (four positions) and the significant underperformance of AP Memory. However, no single position exceeds 15% of the portfolio, and the India exposure is diversified across financials, energy, and IT services.
Emerging markets remain sensitive to global interest rates, currency fluctuations, and geopolitical events. Investors should be prepared for volatility.
Position Review and Actions
All positions are within their minimum holding period (protected) and none have triggered a thesis break or other closure criteria. Therefore, no positions are recommended for closure this week.
We will continue to monitor AP Memory closely for any fundamental deterioration, and we remain constructive on the long-term growth prospects of the portfolio’s holdings.
What to Watch
- Earnings reports from Indian financials (HDFC, Bajaj Finance) and technology (TCS) in the coming weeks.
- Global semiconductor demand and its impact on Samsung and AP Memory.
- Brazilian economic data and its effect on Embraer and WEG.
- Currency movements in emerging markets, particularly the Indian rupee and Brazilian real.
Conclusion
The Emerging Markets Portfolio remains well-positioned to benefit from long-term growth in developing economies. While some positions are under pressure, the portfolio’s diversification and the strong performance of Embraer provide a solid foundation. We will continue to review each position on its merits and make adjustments when warranted.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making investment decisions.