Matthews Emerging Markets Small Companies Fund's Strategic Move: Netweb Technologies India Ltd ...

This article first appeared on GuruFocus .

Insightful Portfolio Adjustments in the Third Quarter of 2025

Matthews Emerging Markets Small Companies Fund ( Trades , Portfolio ) recently submitted its N-PORT filing for the third quarter of 2025, revealing strategic investment decisions. 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. Matthews has been investing in Asia since 1991, leveraging its experience to identify promising companies in the region.

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Summary of New Buy

Matthews Emerging Markets Small Companies Fund ( Trades , Portfolio ) added a total of 13 stocks, among them:

• The most significant addition was Netweb Technologies India Ltd ( BOM:543945 ), with 160,877 shares, accounting for 1.37% of the portfolio and a total value of ?66.2 million.

• The second largest addition to the portfolio was Theon International PLC ( XAMS:THEON ), consisting of 111,124 shares, representing approximately 0.88% of the portfolio, with a total value of 4,248,500.

• The third largest addition was Baltic Classifieds Group PLC ( LSE:BCG ), with 872,984 shares, accounting for 0.75% of the portfolio and a total value of 3,639,640.

Key Position Increases

Matthews Emerging Markets Small Companies Fund ( Trades , Portfolio ) also increased stakes in a total of 10 stocks, among them:

• The most notable increase was Inpost SA ( XAMS:INPST ), with an additional 392,966 shares, bringing the total to 970,303 shares. This adjustment represents a significant 68.07% increase in share count, a 1% impact on the current portfolio, with a total value of 11,946,030.

• The second largest increase was Yageo Corp ( TPE:2327 ), with an additional 412,868 shares, bringing the total to 475,000. This adjustment represents a significant 664.5% increase in share count, with a total value of NT$2,663,710.

Summary of Sold Out

Matthews Emerging Markets Small Companies Fund ( Trades , Portfolio ) completely exited 2 holdings in the third quarter of 2025, as detailed below:

• Proya Cosmetics Co Ltd ( SHSE:603605 ): Matthews Emerging Markets Small Companies Fund ( Trades , Portfolio ) sold all 570,356 shares, resulting in a -1.28% impact on the portfolio.

• Saudi Tadawul Group Holding Co ( SAU:1111 ): Matthews Emerging Markets Small Companies Fund ( Trades , Portfolio ) liquidated all 10,185 shares, causing a -0.09% impact on the portfolio.