This fund is one of the top Asia Funds in the sector, however, it has a short track record. The fund itself spun out of the Global Opportunities Fund which had a large weighting to Asia and therefore it made sense to the team to set up an Asia Fund. The team is based in Hong Kong and sits alongside the global team. In terms of styles they follow the same process.
It is a pure domestic Asia play that focuses on high quality businesses which are trading below their book value. The fund is a high conviction play with between 25 and 40 holdings. Currently the fund has 28 holdings.
They believe that to get the best value from a company they need to be long term holders of a stock. The focus is on bottom up stock picking and the team are encouraged to be curious about the world around them. This helps them to find good ideas. In terms of holdings, quality plays a key part and this is through meetings and site visits, and valuation is crucial (if a share is worth $1 but they can get it at $0.80 then that is key to the process). Portfolio construction includes risk management…..read more