Coronation
Coronation Global Emerging Markets Equity Strategy
Jun 2026 → Jun 2026
Our archive holds 1 letter from this strategy, behind 4 investment theses and positions in 23 companies. Every quote below is copied verbatim from the letter it came from.
1 letter in a year — follow all of Coronation for every strategy.
What it bought and sold
The main sources of funding for the quarter's purchases were this reduction in SK Hynix, profit- taking in Delivery Hero (0.9%) after it doubled, and a trim of the Strategy's large TSMC position (9.6%) as we continue to manage overall exposure to the AI supply chain.
We re-established a holding in Mahindra & Mahindra (0.9%), a turnaround candidate that had been hit by both a weak agricultural season and a broader economic slowdown, and built up Bajaj Finance (0.9%), where earnings growth of over 20% is among the highest of the Indian financials, while adding to the high-quality private-sector banks HDFC (3.6%) and ICICI (2.4%).
The Strategy also holds a modest direct position in Tencent (0.5%), which we initiated during the quarter, complementing the much larger indirect exposure the Strategy holds through Prosus and Naspers, and giving us a cleaner route to what we regard as one of the highest-quality businesses in EM.
In China, we started building two new consumer positions. Yum China (0.5%), the operator of KFC and Pizza Hut in the country, trades on around 13x forward earnings and offers a long runway of store growth with limited regulatory risk, while H World (0.3%), a leading hotel operator, is benefitting from the margin expansion of an increasingly asset-light, franchise-led model, supported by a strong loyalty programme and a net cash balance sheet that leaves room for shareholder returns.
- New positionMahindra & Mahindra LtdJun 2026
We re-established a holding in Mahindra & Mahindra (0.9%), a turnaround candidate that had been hit by both a weak agricultural season and a broader economic slowdown, and built up Bajaj Finance (0.9%), where earnings growth of over 20% is among the highest of the Indian financials, while adding to the high-quality private-sector banks HDFC (3.6%) and ICICI (2.4%).
We added materially to Nu Holdings (6.5%), now one of the Strategy's largest positions, and to MercadoLibre (6.4%), using their share price weakness to build both toward the top of the portfolio, and increased Grab (4.3%) once greater clarity on government commission caps removed a regulatory overhang.
We re-established a holding in Mahindra & Mahindra (0.9%), a turnaround candidate that had been hit by both a weak agricultural season and a broader economic slowdown, and built up Bajaj Finance (0.9%), where earnings growth of over 20% is among the highest of the Indian financials, while adding to the high-quality private-sector banks HDFC (3.6%) and ICICI (2.4%).
- ExitedBaidu, Inc.Jun 2026
In Q2, we exited two positions entirely. We sold out of Baidu, where our conviction in its AI monetisation path weakened, with the proceeds helping to fund higher-conviction ideas; and we sold Melco Resorts, where governance lapses as well as high financial leverage, subdued top-line growth and ongoing regulatory uncertainty in Macau left better risk-adjusted returns available elsewhere.
Within memory, we continued to reduce SK Hynix on valuation grounds, redeploying part of the proceeds into Samsung Electronics preference shares, which trade at a record- wide discount to the ordinary shares.
We added materially to Nu Holdings (6.5%), now one of the Strategy's largest positions, and to MercadoLibre (6.4%), using their share price weakness to build both toward the top of the portfolio, and increased Grab (4.3%) once greater clarity on government commission caps removed a regulatory overhang.
Within memory, we continued to reduce SK Hynix on valuation grounds, redeploying part of the proceeds into Samsung Electronics preference shares, which trade at a record- wide discount to the ordinary shares.
In China, we started building two new consumer positions. Yum China (0.5%), the operator of KFC and Pizza Hut in the country, trades on around 13x forward earnings and offers a long runway of store growth with limited regulatory risk, while H World (0.3%), a leading hotel operator, is benefitting from the margin expansion of an increasingly asset-light, franchise-led model, supported by a strong loyalty programme and a net cash balance sheet that leaves room for shareholder returns.
- New positionAsia Vital Components Co LtdJun 2026
We also re-entered Asia Vital Components (0.6%), a Taiwanese supplier of thermal and cooling solutions to the AI server supply chain, on valuation grounds after it declined.
We re-established a holding in Mahindra & Mahindra (0.9%), a turnaround candidate that had been hit by both a weak agricultural season and a broader economic slowdown, and built up Bajaj Finance (0.9%), where earnings growth of over 20% is among the highest of the Indian financials, while adding to the high-quality private-sector banks HDFC (3.6%) and ICICI (2.4%).
- New positionKia CorporationJun 2026
In Korea, we re-initiated a position in Kia (0.7%) following further share price weakness.
We added materially to Nu Holdings (6.5%), now one of the Strategy's largest positions, and to MercadoLibre (6.4%), using their share price weakness to build both toward the top of the portfolio, and increased Grab (4.3%) once greater clarity on government commission caps removed a regulatory overhang.
- ExitedMelco Resorts & Entertainment LtdJun 2026
In Q2, we exited two positions entirely. We sold out of Baidu, where our conviction in its AI monetisation path weakened, with the proceeds helping to fund higher-conviction ideas; and we sold Melco Resorts, where governance lapses as well as high financial leverage, subdued top-line growth and ongoing regulatory uncertainty in Macau left better risk-adjusted returns available elsewhere.
Also held
Its investment theses
- MercadoLibreJun 2026MercadoLibre is an e-commerce and digital consumer platform that the Strategy views as a high-quality, highly profitable compounder with long growth runway and upside from current valuation.
- Yum China Holdings, Inc.Jun 2026Yum China operates KFC and Pizza Hut in China and is being added for its long runway of store growth, limited regulatory risk, and attractive valuation.
- H World Group LimitedJun 2026H World is a leading hotel operator benefiting from margin expansion, an asset-light franchise model, a strong loyalty program, and net cash for shareholder returns.
- Tencent Holdings LtdJun 2026Tencent is a high-quality EM business that the Strategy owns directly for cleaner exposure, and it is seen as strategically disciplined in AI rather than behind.