Nomura Emerging Markets Fund on Samsung Electronics Co. Ltd.
Thesis
Samsung Electronics outperformed the benchmark as earnings expectations were revised upward. The fund believes the performance reflected improving earnings rather than a valuation re-rating. Recent volatility is viewed as largely positioning and short-term sentiment driven, while the fundamental drivers of long-term growth and valuation re-rating remain intact.
“continued to reflect primarily upward revisions to earnings expectations, rather than valuation re-rating.”
Key risks
- Short-term positioning and sentiment-driven volatility
- Trade and geopolitical risks and related supply-chain disruptions