Short Description:
Lazard’s LDMOX fund sees strong Q4 2025 with a 9.4% return. Our analysis breaks down their strategy, top holdings like TSMC, and the key market bets driving their success.
Read Time: 3 minutes 15 seconds
Main Article
The Lazard Developing Markets Equity Portfolio (LDMOX) delivered robust performance in Q4 2025, posting a 9.4% return and handily outperforming its benchmark. This success, as detailed in their recent shareholder commentary, was propelled by a strategic focus on high-conviction stock selection across key emerging economies. The fund’s managers attribute strong results to holdings in the Information Technology and Financials sectors, particularly within Asian markets like Taiwan and India. Their disciplined, bottom-up approach to identifying companies with durable competitive advantages continues to be the cornerstone of their developing markets investment strategy, seeking long-term growth despite inherent volatility.
A deep dive into their top holdings reveals a significant bet on technological supremacy and digital finance. Taiwan Semiconductor (TSMC) remained the fund’s largest position, a testament to its indispensable role in the global semiconductor supply chain. Other notable emerging markets stocks included Indian financial giants HDFC Bank and ICICI Bank, reflecting optimism about India’s burgeoning digital economy and consumption growth. The portfolio is intentionally concentrated, with the top ten positions representing over a third of its assets, showcasing a high-conviction philosophy rather than broad index tracking.
Looking ahead, Lazard’s Mutual Fund commentary highlights a cautiously optimistic outlook. They are capitalizing on valuation disparities, finding opportunities in markets like South Korea while remaining selective in China. The overarching theme is a shift from broader macroeconomic bets toward company-specific stories with resilient business models and strong governance. For US-based investors, LDMOX offers a professionally managed avenue to access the dynamic growth potential of developing economies, leveraging Lazard’s deep analytical resources and on-the-ground expertise to navigate these complex markets.
Short Summary
The Lazard Developing Markets Equity Portfolio (LDMOX) excelled in Q4 2025, driven by strategic holdings in Asian markets and sectors like Information Technology. With top positions in TSMC and Indian financials, the fund’s focused, bottom-up approach aims to capture long-term growth in emerging economies. This performance underscores the value of active management in navigating the volatile but high-potential developing markets landscape for strategic portfolio diversification.
