EM Fund Stock Picks & Country Commentaries (September 21, 2025)

Jonathan Young, the CEO of London based Gryphon Holdings Plc, had contacted me about his new book about the adventures of investment bankers frontier markets (free to read extract is here) that might interest subscribers:

📖 Frontier: An Emerging Markets Story

Emerging markets have been promoted by financiers since the late 1980s. The idea was correct: these economies have delivered over three quarters of global growth. Yet the long years of hopeful fanfare, false dawns and woeful returns have proven that bankrolling the end of history was easier said than done. For some, stunning financial coups; for many, catastrophic losses; for all, an odyssey from which none would return unaltered. Frontier is the epic account of fortunes and friendships made and destroyed at the turbulent event horizon of capitalism, as the smart Western money ventured beyond the crumbling Berlin Wall. But three decades on, mystified by our clinical, disconnected ways, the countries of the East and global South are turning elsewhere for the capital they desperately need. Amidst the roiling drama of the emerging markets lies the answer to the one question few going eastward ever thought to ask: who really are the extraordinary peoples building new countries at the frontier of capitalism – and what do they want?

Note that his firm Gryphon Holdings Plc is focused on CEEMENA:

We are the longest established British investment firm exclusively focused on the countries of CEEMENA. We have deep local networks and a profound cultural understanding of the region and its peoples. Partnering with businesses in this geography is the only thing we do. The Central & Eastern Europe, North Africa, Central Asia region (“CEEMENA”) is the world’s most underinvested geography. This is the economic space in which we operate, seeking to support strong local businesses in realising their ambitions by providing or arranging long term capital. We cornerstone projects and have built far-reaching access to European sources of capital that think the same way as us. We have completed over 100 projects in the region since 1991, all with a cross border element. Many clients have become market leaders in their territory.

As of the latter part of September, more August fund updates (our continuously updated post containing all funds is here) have become available along with new research starting with some non-emerging markets pieces:

🔬🌐🚩 Bringing it home: the companies winning from deglobalisation(Baillie Gifford) – Key points
- Edinburgh Worldwide Investment Trust focuses on businesses that can prosper during international tensions and fragmenting global markets
- Mp Materials Corp (NYSE: MP) mines rare earths in the US while Silex Systems Ltd (ASX: SLX / FRA: RW4 / OTCMKTS: SILXF / SILXY) develops uranium enrichment technology, both reducing the west’s reliance on geopolitical rivals
- Digital marketplace Xometry (NASDAQ: XMTR) exemplifies ‘deglobalisation’ by increasing supply chain resilience in uncertain times
🔬🌍 Guess who is beating the Magnificent 7? (Capital Group) – If you were hunting for a group of stocks to dethrone the Magnificent Seven (“Mag Seven”), there is a good chance European banks were not at the top of your list. But looking at returns over the past 12 months and on a year-to-date basis, that is exactly what has happened.
🎥📝🌍 Global Perspectives: Charting Europe’s path to economic renewal (Janus Henderson Investors) 17:53 Minutes – In this episode, Portfolio Manager Robert Schramm-Fuchs explores how structural reforms in Europe are reshaping the landscape for investors, across sectors and industries.
🔬🌍 Europe’s summer of disillusionment (ING) – Europe’s core weakness has been laid bare this summer: it’s not the analysis or awareness that’s lacking, but the willingness – and ability – to make meaningful change

New Asia Fund Documents & Research

🗄️🌏Abrdn Asia Focus PLC (LON: AAS), a high conviction portfolio of Asian small caps, August monthly factsheet (detailed economic and portfolio) discussed or mentioned:
- 📈🇹🇼 Taiwan Union Technology Corporation (TPEX: 6274) – Value-added materials & advanced mass lamination service to the global electronics industry.
- 📈🇹🇼 Chroma Ate Inc (TPE: 2360) – Taiwanese automated testing company. Semiconductor testing for AI-artificial intelligence. 🇼 🏷️
- 📈🇹🇼 Sunonwealth Electric Machine Industry (TPE: 2421) – Cooling systems. Motors, fans, cooling modules, ventilation fans & air purification solutions.
- 📈🇨🇳 Hesai Group (NASDAQ: HSAI) – Lidar products for autonomous mobility, robots, etc. Three-dimensional light detection & ranging (lidar) solutions. 🏷️
- 📈🇨🇳 Atour Lifestyle Holdings (NASDAQ: ATAT) – Hospitality & lifestyle company in China. Portfolio of lifestyle hotel brands. 🏷️
- 📈🇨🇳 Zhejiang Shuanghuan Driveline Co Ltd (SHE: 002472) – Gears, transmission & drive components.
- 📈🇻🇳🏛️ Military Commercial Joint Stock Bank (HOSE: MBB) – Banking services.
- 📈🇰🇷 HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (KRX: 009540) – Shipbuilding & offshore engineering businesses. 🏷️
- 📉🇰🇷 Classys (KRX: 214150) – Medical aesthetics technologies w/ market share positioning in 55+ countries (Europe, Australia, Brazil & Singapore). 🏷️
- 📉🇮🇳 Cholamandalam Financial Holdings (NSE: CHOLAHLDNG / BOM: 504973) – Vehicle finance, loan against property, home, SME loans + secured, business & personal, & consumer & small enterprise loans + general insurance services. Subs. of the Murugappa Group. 🇼
- 🏧🇹🇼 MPI Corporation (TPEX: 6223) – Testing. 5 main business sectors: Probe Card, Photonics Automation, Advanced Semiconductor Test, Thermal Test & Celadon Systems.
- 🇹🇼 Makalot Industrial Co Ltd (TPE: 1477) – Integrated apparel manufacturer & service provider.
- 🇮🇳 Vijaya Diagnostic Centre (NSE: VIJAYA / BOM: 543350) – State-of-the-art diagnostic centers.
- 🇹🇼 Chief Telecom Inc (TPEX: 6561) – VPN service provider. Subs. of Chunghwa Telecom (TPE: 2412 / NYSE: CHT). 🇼
Asian Frontier Capital has or was mentioned in these pieces:
- 📰🇱🇰 Sri Lanka now in growth phase, says AFC (Daily FT)
  - Asia Frontier Capital Fund Manager Ruchir Desai says SL growth momentum building through 2025
  - CSE up nearly 200% in USD terms since early 2023, valuations still below pre-crisis levels
  - India proximity offers long-term opportunities similar to Southeast Asia’s link to China’s rise
  - External risks remain, yet recovery largely domestically driven
  - Exposure to US tariff risk much smaller compared to regional peers
- 🎙️🌏 Ruchir Desai, Co-Fund Manager of the AFC Asia Frontier Fund Discusses with Steven Filby the Continued Strong Outperformance by Asian Frontier Markets in 2025 (RTHK Money Talk) 10:14 Minutes – Ruchir Desai, Fund Manager, Asia Frontier Capital says 2025 is the third year of strong performance in Asian frontier markets, taking a deep dive into what’s happening in Pakistan, saying greater stability alongside inflation and interest rates coming down will help with growth. He moves onto Bangladesh and why it has proved the dark horse he suspected it could be this year.
- 📰🇱🇰 Sri Lanka: From Stability to Growth – by Ruchir Desai, Co-Fund Manager of the AFC Asia Frontier Fund (International Banker) – With an outlook for stable growth, a universe of exceptionally well-run companies with good corporate governance and valuations that are still below pre-crisis levels, Sri Lanka remains a top country pick for our AFC Asia Frontier Fund.

New Asia Fund Documents & Research

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