China/Greater China Equities

China/Greater China Equities

A contrarian approach to investing in the Chinese equity markets which emphasises bottom-up stock picking and identifying valuation outliers. Our Equities team has expertise investing in China (offshore) and Greater China (Taiwan, Hong Kong) equities.

Our edge

Strategy offers low alpha correlation to most other China equity managers and provides additional diversification to investors with existing China exposure.
Unique contrarian approach provides less crowded strategy to access the China market.
Highly experienced team.

Investment Philosophy

Prices frequently move more than justified due to shifts in investor risk perception and expectations.
True underlying value is not always reflected in prices.
Emotional detachment, rigorous analysis and discipline over a longer-term horizon allows us to exploit mispriced opportunities.

Investment Process

Idea generation
Proprietary screens are first used to identify valuation outliers to systematically exploit behavioural sources of mispricing.
Fundamental analysis
The Greater China Equities Focus team then conducts fundamental research to validate the screen’s signal using a differentiated approach to valuation by focusing on a company’s ability to generate sustainable earnings.
Portfolio construction
Stocks that pass through the earlier screening and have high upside potential as well as high shared conviction make it to the team’s Conviction list. Stocks from this Conviction list become the core positions in our strategies.
Risk control & Review
Risk control and review is embedded at all stages of the process and conducted by the Greater China Equities focus team itself, senior management and our independent risk oversight team.

ESG

The team incorporates ESG issues into its fundamental analysis and decision-making process (in cases where these factors could have a material impact on a company’s valuation and financial performance), before making investment decisions as well as during the time an investment is held in the portfolios.

Relies on a proprietary fundamental research process to assess all material factors.
Engages with invested entitles and vote on all resolutions (except when it is not in the best interests of a client).
Utilises third-party ESG data and research vendors in order to assist with the due diligence and ongoing monitoring processes.