Our Golden Rules

Over 25 years that we have been investing in China, we have developed an effective strategy to uncover the best opportunities that this vast country has to offer. Our bottom-up, geographically based coverage and extensive company visits allow us to find potential “winners” wherever they are based. Such travels also help us get a better feel for the macroeconomic environment - which can vary greatly from province to province - rather than relying on "official" numbers.

We invest in ...

· Management-owned companies which tend to be small- to mid-cap in size

· Beneficiaries of consumption and the push to develop the service sector

· Companies that are obscure and/or out-of-favor

We identify companies ...

· With low valuation

· Undergoing chance, growing faster or recovering more rapidly than market expects

· With a catalyst which will draw attention or unlock stock value

· Involved in legislative or regulatory developments not yet discounted

We select companies ...

· Entrepreneurial in approach

· Operating in a niche market

· With distinct competitive advantage and prospects for high growth

· With sustainable margins and strong balance sheets

We manage portfolios ...

· With an index agnostic approach

· With limited use of leverage

· With liquidity as the key determinant for individual positions

· Adhering to strict investment guidelines, diversification rules and risk thresholds