ABOUT THIS STRATEGY
China A Shares represent the largest segment of the Chinese equity market, accounting for the majority of the total market capitalization. Historically inaccessible to foreign capital, the A shares market is increasingly important for global investors and currently the second largest equity market in the world. A Shares offer a broad opportunity set with access to Chinese consumers as well as more domestically focused companies previously unavailable to most international investors. Due to the immaturity of the market and fund flows dominated by retail investors, A Shares can be largely sentiment driven and exhibit higher volatility than more mature equity markets, creating opportunities for fundamentally driven investment strategies.
Robust, High-Conviction Approach
The strategy aims to provide investors with a benchmark-agnostic, conviction-weighted, concentrated portfolio of high-quality Chinese companies domiciled in and focused on mainland China markets.
Opportunities in an Immature Market
The portfolio managers seek to identify investment opportunities, both at an industry and individual company level, not yet recognized by the broader market. In addition, they attempt to take advantage of pricing inefficiencies inherent in a retail investor-led market, often characterized by high turnover and a short-term mentality.
Deep Insights and Experience
Understanding the complexities of the local market, business practices and local regulations in China requires specialist knowledge, experience and resources. Our management team, based in London and Singapore, combines detailed local knowledge, dedicated China-specific investment experience and objective foreign insight to identify attractive investment opportunities.
Dr. Myron Scholes and Dr. Ashwin Alankar describe how successfully managing tail risks is key to maximizing terminal value.