EM Fund Stock Picks & Country Commentaries (June 29, 2025)
Activist US investor targets UK trusts, 10 challenges facing China’s economy, Taiwan equity, India too focused on services vs manufacturing, Middle East conflict, Sri Lankan stocks, Brazil, etc.
This recent FT piece regarding fund manager Aberdeen’s trainwreck rebranding as Abrdn caught my attention:
📰 ‘Don’t try to be a teenager’: lessons from Abrdn’s disastrous rebrand (FT) $ June 2025 🗃️
Many attempts to create a fresh, agile image have failed but playing on heritage can be positive
And:
Creating a “modern, agile, digitally enabled” brand was part of the stated rationale at the time, as was the lack of available internet addresses for more obvious choices such as Aberdeen.
But the derision over the rebrand eventually prompted chief executive Jason Windsor to reverse the decision of his predecessor, Stephen Bird, in an attempt to remove “distractions”. Aberdeen declined to comment.
So what can other companies learn from the episode? Michael Ruby, president of consultancy Park & Battery, says Aberdeen “is a well-established organisation that has tried to appear like an innovative fintech”. The effort failed because it generated a “cognitive dissonance” that “immediately screams they’re trying to play on a fad and it’s not authentic”.
I don’t know about you but when it comes to money matters, having a name or brand that at least appears to have been around for generations OR is perhaps very personal (e.g. think family names like Goldman Sachs or Swiss private banks like Pictet) tends to connote continuity and safety for me.
Their failed attempt also reminded me of this Twitter thread from some months about companies destroying their logos for the digital age or rather making them all look the same:
Another interesting piece comes from Aberdeen itself:
🔬 Saba puts investment trusts back in the public eye (Aberdeen Investments) June 2025
Jonathan Davis, Editor of the annual Investment Trusts Handbook and host of the award-winning Money Makers podcast, explores the bold and controversial entry of Saba Capital Management [Closed-End Funds (“CEFs”)] into the UK investment trust sector.
Saba Capital Management, a US hedge fund founded by chess prodigy Boaz Weinstein, first emerged as a prominent activist investor in the UK investment trust sector in 2023. It has since targeted nearly 20 investment trusts whose shares were trading at wide discounts to their Net Asset Value (NAV), building sizeable stakes and seeking to pressurise their boards into doing more to enhance shareholder value.
📰 Hedge fund Saba reaches agreement with another investment trust target (Reuters) May 2025
Five of nine UK investment trusts have voted to restructure or liquidate this year because of Saba's $5.5 billion activist campaign that targeted UK investment funds.
Some investor activism plus hedge funds and private equity can be a good thing for all investors and for the overall economy.
However, my March 23, 2025 post covered a interview of an activist who follows the increasingly destructive and maligning influence American private equity has had on a number of sectors of the US economy while my March 10, 2024 post took a detour away from EMs to discuss the destruction that private equity has caused within the California almond industry.
These posts have also noted the ongoing winddown of the South Korean preference shares focused Weiss Korea Opportunity Fund (LSE: WKOF) although it does not appear to be related to any activism by this particular hedge fund.
But given the number of emerging and frontier market investment funds listed in London that give retail investors easy access to such markets, I do hope they are not targeted by this particular American hedge fund IF they are only looking to make a quick return.
As of the end of June, more may fund updates (our continuously updated post containing all funds is here) have become available along with new research starting with yet some more pieces pushing European stocks or other investments:
🔬🌐 Baillie Gifford Managed: our 7 most exciting growth picks (Baillie Gifford) - Key points
The Managed Team works to identify exceptional growth opportunities across global markets, focusing on companies with sustainable competitive advantages
From Amazon’s retail dominance to TSMC’s semiconductor leadership and DSV’s strategic acquisitions, the portfolio showcases diverse sources of potential growth
Beyond equities, the portfolio includes carefully selected bonds from Australian government debt to corporate issuers that complement our growth strategy
🌐 Amazon.com (NASDAQ: AMZN)
🇹🇼 Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE: TSM) 🇼 🏷️
🇬🇧 Babcock International Group PLC (LON: BAB / FRA: BW3 / OTCMKTS: BCKIF) - Aerospace, defence and nuclear engineering services. 🇼
🇩🇰 DSV A/S (CPH: DSV / FRA: DS81 / OTCMKTS: DSDVF) - Global transport services by road, air, sea & train. 🇼
🇸🇬 United Overseas Bank (SGX: U11 / FRA: UOB / UOB0 / OTCMKTS: UOVEY / UOVEF) - Global network of 500 branches & offices across 19 countries in Asia Pacific, Europe & North America. 🇼 🏷️
International Workspace Group bonds – Corporate Credit (UK)
Long-dated Australian government bonds
🔬🌍 The European Renaissance (Baillie Gifford) Key points
Europe is emerging as an attractive investment destination due to improved economic outlook and significant fiscal stimulus plans
Our Multi Asset portfolios are capitalising on European opportunities through investments in utilities and logistic warehousing
An increase in European political stability and fiscal expansion creates a rare window for investors seeking diversification and growth potential beyond US markets
🇪🇸 Iberdrola SA (BME: IBE / FRA: IBE5 / OTCMKTS: IBDRY / IBDSF) – Electric utility. Subs. include ScottishPower, Avangrid & Neoenergia. 🇼
🇮🇹 Terna SpA (BIT: TRN / FRA: UEI / OTCMKTS: TERRF / TEZNY) – Transmission system operator. 3 segments: Regulated Italy, non-regulated & international. 🇼
🇧🇪 Montea NV (EBR: MONT / FRA: M8E / OTCMKTS: MONSF) – Logistics REIT.
🇧🇪 Warehouses de Pauw NV (EBR: WDP / FRA: WPHB / OTCMKTS: WDPSF) – Logistics real estate warehouses & offices.
🔬🌍 NATO Puts A Price On Peace (Northern Trust) - NATO's new spending pledge eases security concerns but adds to fiscal pressures.
🔬🌍 Europe Edition - A crossroads (UBS Asset Management)