EM Fund Stock Picks & Country Commentaries (May 11, 2025)
Unexciting (but reliable) Asian small cap investing themes, new investment face of MENA, European defense stocks, global real estate outlooks, MercadoLibre defies skeptics, Q1/April fund updates, etc.
As of early May, some more Q1 and April fund updates (our continuously updated post containing all funds is here) plus new research have become available starting with yet more examples of funds pushing investing in Europe:
🎙️🇪🇺🚩 Investment Opportunities in a Changing Military Landscape (Mawer IM) 38:18 Minutes (Transcript) - In this episode, we discuss the defense industry's evolution with equity analyst Joshua Samuel. He highlights the historical underinvestment in European defense, the recent increase in defense spending, particularly Germany's program, and the strategic importance of land systems. The conversation highlights how the current geopolitical environment has transformed defense from an underperforming sector to an investment opportunity, and valuations for companies like Rheinmetall now reflect much of this potential.
🇩🇪 Rheinmetall AG (ETR: RHM / FRA: RHM / OTCMKTS: RNMBF)- Arms manufacturer.
🇫🇷 Thales SA (EPA: HO / FRA: CSF / OTCMKTS: THLLY / THLEF) - Arms manufacturer.
🇮🇹 Leonardo SpA (BIT: LDO / FRA: FMNB / OTCMKTS: FINMF) - Aerospace, defence & security.
🇰🇷 LIG Nex1 Co (KRX: 079550) - Develops & produces various weapon systems worldwide.
🇬🇧 BAE Systems (LON: BA / FRA: BSP / OTCMKTS: BAESF / BAESY)
🇪🇺 KNDS formerly KMW+Nexter Defense Systems
🇫🇷 Dassault Aviation SA (EPA: AM / FRA: DAU0 / OTCMKTS: DUAVF)
🎙️🇩🇪 Getting Germany going (The Macro Brief by HSBC Global Research) 16:10 Minutes - German economists Stefan Schilbe and Anja Heimann consider whether a policy reboot – including a huge fiscal package – could help get Europe’s largest economy back on track.
🎙️🇬🇧 Looking for good news in the UK (The Macro Brief by HSBC Global Research) - With the UK facing a long list of economics challenges, Liz Martins, Senior UK Economist, considers whether there is any light at the end of the tunnel.
🎥🇪🇺🚩 Europe: why President Trump's tough love is a catalyst for change (Platinum Asset Management) 2:50 Minutes - According to Adrian Cotiga, that US pressure is creating a pivot point for Europe and Germany's huge stimulus package shows just how far and fast Europe can turn when it needs to. In this video, Adrian takes a quick but comprehensive look at the reform Europe needs and the companies that could benefit from that shift.
🇩🇪 Siemens AG (ETR: SIE / FRA: SIE / OTCMKTS: SIEGY / SMAWF)
🇷🇴 Banca Transilvania (BSE: TLV) - Romania’s largest bank.
🇵🇱 Dino Polska (WSE: DNP / FRA: 5Y2 / OTCMKTS: DNOPY) - Nationwide network of medium-sized supermarkets.
🇭🇺 Wizz Air (LSE: WIZZ / OTCMKTS: WZZZY / FRA: WI20 / FRA: WI2) - Ultra low-cost carrier. Short-haul & medium-haul point-to-point routes in Europe, Middle East, North Africa & Northwest Asia.
🔬🇺🇸 Smaller companies: on the road – the US (Aberdeen Investments) - The Raymond James US Equities Conference is a prime opportunity to engage with companies and investors. Here’s what we discussed this year.
🇺🇸 Tradeweb Markets Inc (NASDAQ: TW) - Financial technology company that builds & operates electronic over-the-counter marketplaces for trading fixed income products, ETFs & derivatives.
🇺🇸 Brown & Brown Inc (NYSE: BRO) - Insurance brokerage firm specialising in risk management.
New Asia Fund Documents & Research
🗄️🎬🌏 Asian Frontier Markets Update Webinar (Asia Frontier Capital) 1:15:13 Minutes (May 2025)
00:00 - Thomas Hugger - Introduction
01:52 - Ruchir Desai – AFC Asia Frontier Fund
19:28 - Ahmed Tabaqchali – AFC Iraq Fund
28:41 - Scott Osheroff – AFC Uzbekistan Fund
37:03 - Vicente Nguyen – AFC Vietnam Fund
48:21 - Q&A
Asian Frontier Capital has published their April newsletter update:
🗄️🌍 AFC Asia Frontier Fund April monthly newsletter (detailed economic and portfolio - AFC Iraq Fund and AFC Uzbekistan Fund Deliver Positive Returns in a Volatile Month - April 2025 Update) noted that April gains were led by Georgia, Mongolia, Iraq, and Uzbekistan while the main negative impact on performance came from Vietnam and Pakistan. Stocks discussed or mentioned by name:
📈🇬🇪 🇺🇿 Tbc Bank Group Plc (LON: TBCG / OTCMKTS: TBCCF) - The largest banking group in Georgia.
📈🇬🇪 🇦🇲 Lion Finance Group PLC (LON: BGEO / FRA: GEB / OTCMKTS: BDGSF) formerly Bank Of Georgia Group Plc - Banking + financial in Georgian & Armenian markets through universal banks.
Unnamed performers/transactions (that can be guessed) mentioned:
📈🇲🇳 Junior copper miner from Mongolia
📈🇲🇳 Mongolian junior gold miner
📈🇲🇳 Mongolian leather producer
📈🌍 Technology company with a focus on Asian frontier markets
📈🇬🇪 Georgian bank
🗄️🇮🇶 AFC Iraq Fund’s April newsletter (economic and portfolio) noted the local market hitting all time highs, lower oil prices and the increased adoption of banking.
🗄️🇺🇿 AFC Uzbekistan Fund’s April newsletter discussed how Uzbekistan remains largely unaffected by American tariffs and the new Presidential decree on SOE privatisations.
🗄️🇻🇳 AFC Vietnam Fund’s April newsletter discussed President Trump’s trade war; Vietnam's flexibility and strategic adjustments amidst tariff uncertainty; the several key factors that underpin a positive projection of Vietnam being an attractive investment destination; and discussed Agriculture Bank Insurance JSC (HNX: ABI) plus the Annual General Meetings of Lam Dong Mineral and Building Material JSC (HOSE: LBM) (precasted concrete, tuynel brick, construction stone, refractory material, kaolin & Bentonite) and Tng Investment And Trading JSC (HNX: TNG) (garment maker).
🎙️🌏 Peter Lewis’ Money Talk: Ruchir Desai, Co-Fund Manager of the AFC Asia Frontier Fund Discusses Geopolitical Tensions in South Asia and the Impact of U.S. Reciprocal Tariffs on Asian Frontier Markets (from 35’15”) (RTHK Money Talk) Starting at the 35:18 Minute Mark (May 2025)