Matthews Emerging Markets Small Companies Fund's Strategic Moves: Spotlight on Lundin Mining Corp
Insights into the Fund's Fourth Quarter 2025 Investment Adjustments
This article first appeared on GuruFocus. Insights into the Fund's Fourth Quarter 2025 Investment Adjustments Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) recently submitted its N-PORT filing for the fourth quarter of 2025, revealing strategic investment decisions made during this period. The fund, known for its focus on small companies in Asia excluding Japan, aims to invest in businesses with sustainable growth potential. Matthews employs a bottom-up, fundamental investment philosophy, emphasizing long-term performance. The fund's strategy includes active management, a long-term focus on Asia, and bottom-up research, with over 2,000 company meetings annually.
This approach allows Matthews to identify companies with strong business models and quality management teams, offering a range of Asia investment strategies across the risk-reward spectrum. Warning! GuruFocus has detected 4 Warning Signs with BOM:541153. Is BOM:541153 fairly valued? Test your thesis with our free DCF calculator. Matthews Emerging Markets Small Companies Fund's Strategic Moves: Spotlight on Lundin Mining Corp Summary of New Buy Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) added a total of one stock during the quarter: The most significant addition was Saudi Tadawul Group Holding Co (SAU:1111), with 77,670 shares, accounting for 0.66% of the portfolio and a total value of ?2,905,270 million.
Key Position Increases Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) also increased stakes in a total of 13 stocks, among them: The most notable increase was Lundin Mining Corp (TSX:LUN), with an additional 232,900 shares, bringing the total to 242,000 shares. This adjustment represents a significant 2,559.34% increase in share count, a 1.15% impact on the current portfolio, with a total value of C$5,201,270. The second largest increase was Grupo Financiero Galicia SA (NASDAQ:GGAL), with an additional 85,993 shares, bringing the total to 117,790. This adjustment represents a significant 270.44% increase in share count, with a total value of $6,353,590.
Summary of Sold Out Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) completely exited four holdings in the fourth quarter of 2025, as detailed below: Ola Electric Mobility Ltd (NSE:OLAELEC): The fund sold all 5,187,222 shares, resulting in a -0.69% impact on the portfolio. Xtep International Holdings Ltd (HKSE:01368): The fund liquidated all 3,910,000 shares, causing a -0.61% impact on the portfolio. Key Position Reduces Matthews Emerging Markets Small Companies Fund (Trades, Portfolio) also reduced positions in 67 stocks. The most significant changes include: Story Continues Reduced Grupo SBF SA (BSP:SBFG3) by 2,057,600 shares, resulting in a -50.05% decrease in shares and a -1.04% impact on the portfolio.
The stock traded at an average price of R$13.07 during the quarter and has returned 10.97% over the past 3 months and 10.03% year-to-date. Reduced YDUQS Participacoes SA (BSP:YDUQ3) by 1,967,100 shares, resulting in a -48.73% reduction in shares and a -0.99% impact on the portfolio. The stock traded at an average price of R$12.78 during the quarter and has returned 5.80% over the past 3 months and 15.04% year-to-date. Portfolio Overview At the end of the fourth quarter of 2025, Matthews Emerging Markets Small Companies Fund (Trades, Portfolio)'s portfolio included 82 stocks. The top holdings included 5.45% in Bandhan Bank Ltd (BOM:541153), 3.65% in CarTrade Tech Ltd (BOM:543333), 3.56% in Hugel Inc (XKRX:145020), 3.31% in Gold Circuit Electronics Ltd (TPE:2368), and 3.18% in Elite Material Co Ltd (TPE:2383).
The holdings are mainly concentrated in 10 of the 11 industries: Technology, Financial Services, Consumer Cyclical, Industrials, Healthcare, Consumer Defensive, Real Estate, Communication Services, Energy, and Basic Materials.