EM Fund Stock Picks & Country Commentaries (May 25, 2025)
Russia-Ukraine endgame, TWD's strength, India’s manufacturing opportunity, India PE, from Gutenberg to GPT/AI, Mexican industrial real estate, rebounding Latin American stocks, Milei’s IMF deal, etc.
As of the end of May (and Memorial Day weekend in the USA), more April fund updates have become available (our continuously updated post containing all funds is here) plus new research starting with some non-EM pieces mostly pushing Europe (again…) that were probably written before the latest tariff war offensive (but note this FT piece: What EU exports are hit hardest by Trump’s 50% tariff threat? 🗃️):
🎥🇪🇺 Can Europe’s domestic champions catch up with our world beaters? (Fidelity) 59:54 Minutes - Marcel Stötzel, co-portfolio manager of Fidelity European Trust PLC spoke to Citywire’s Jeremy Gordon about the prospects for Europe and explains why his top-performing trust has become more interesting over the past six months.
🔬🇺🇸 Does Buffett’s Farewell Represent Peak America? (Firstlinks)
Going back to the question posed in the title: does Buffett’s farewell represent peak America? From a stock market perspective, I suspect the answer may be yes. Though commanding a 26% share of the global economy, the US has managed to garner 75% of the MSCI world market index. That’s unprecedented and given the current record high profit margins and near record company valuations, that could well represent a peak both in the short and long terms.
From an economic viewpoint, I’m a little more optimistic than Buffett. For all of Trump’s faults, he’s brought Government spending and the deficit into the spotlight and now politicians and the public are aware of the reckless path that the country is on. That spotlight should ensure more action to address the deficit.
This, plus US global leadership in technology, access to cheap energy, and positive demographics, should ensure a prosperous America well beyond Buffett.
Janus Henderson Investors has these Europe focused pieces:
🔬🇪🇺 Could banking reforms unleash growth for Europe? - European equities manager Robert Schramm-Fuchs looks at the ECB’s bold steps to streamline banking, paving the way for a potential European economic renaissance.
🔬🇪🇺 Quick View: What do Trump’s EU tariffs mean for European equity markets? - European Equities Portfolio Manager Robert Schramm-Fuchs considers the potential impact of President Trump’s proposed 50% EU tariffs on European equity markets.
🔬🌍 The Russia-Ukraine Endgame and the Future of Europe (JP Morgan Chase) - Generally, we see 4 possible outcomes, each with parallels to other countries today…:
🔬🌐🚩 3 Surprising Market Winners in 2025 (Morningstar)
Morningstar’s European stock index is riding high this year. “The macroeconomic environment has been improving in Europe,” says Michael Field, Morningstar’s chief Europe market strategist. The financial-services sector is a key beneficiary, with names like Banco Santander SAN, UniCredit UNCFF, and HSBC HSBA soaring. Then there’s Germany’s newfound interest in deficit spending and the continent’s focus on military self-sufficiency, spurred by the Donald Trump administration. Spiking share prices for defense stocks like Rheinmetall RHM and BAE Systems BA. tell that story.
As with Europe, Latin American stocks looked like a real bargain coming into this year. In Morningstar’s 2025 Outlook, my colleagues on Morningstar’s research and investment team wrote that “concerns about Mexico and Brazil appear exaggerated.” In fact, they identified Brazil as the highest potential global equity market for the coming 10 years. Latin American stocks are volatile but could hold more upside.
New Asia Fund Documents & Research
🎬🌏🚩 abrdn Asia Focus: Investing in Asia (Aberdeen Investments) 11:16 Minutes - In this video, Abrdn Asia Focus PLC (LON: AAS) Co-manager Gabriel Sacks answers why Asian smaller companies, where the top opportunities lie, and what the China recovery and India’s rise mean for investors. Watch below for key insights into Asia’s dynamic markets.
🇨🇳 Yantai China Pet Foods Co Ltd (SHE: 002891) - Pet food manufacturer.
🇨🇳 Cloud Music (HKG: 9899) 🇰🇾 or NetEase Cloud Music - Leading online music platforms in China. Interactive content community for music enthusiasts. 🏷️
🇨🇳 Hangzhou Robam Appliances Co Ltd (SHE: 002508) - Premium kitchen appliance maker.
🇮🇳 Kfin Technologies (NSE: KFINTECH / BOM: 543720) - SaaS based end-to-end transaction management, channel management, compliance solutions, data analytics & digital services to asset managers. 🏷️
🇮🇳 Newgen Software Technologies Ltd (NSE: NEWGEN / BOM: 540900) - Enterprise content management software.
🇮🇳 Phoenix Mills (NSE: PHOENIXLTD / BOM: 503100) - Operation & management of malls, construction of commercial & residential properties, & hotels. 🇼
🇮🇳 J B Chemicals and Pharmaceuticals Ltd (NSE: JBCHEPHARM / BOM: 506943) - Wide array of pharmaceutical products & solutions.