CHAM Presents at Alpha Hedge in Palm Beach

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Chinus Asset Management CIO Charles Mautz presented at the Alpha Edge East Conference in Palm Beach, Florida last week, on a panel focused on "China after 2015." Here are some key highlights:

  • The Chinese government recently released its 13th Five-Year Plan.  Two key components are (i) reform of state-owned enterprises and (ii) enhancement of the role of the private sector.
  • China currently has 150,000 state-owned enterprises (“SOEs”) that control RMB 100 trillion in assets (US $15 trillion). SOEs earned an average return on assets of 2.4% in 2014. That return was negative if subsidies are excluded.
  • As the Chinese government opens up more of the economy to competition, we believe private companies will take market share very quickly and at much higher profitability.
  • In doing so, these private companies will create tremendous shareholder value, so it is an investment theme that we are following closely.

CHINUS ASSET MANAGEMENT (CHAM), a U.S. West Coast-based asset management firm, provides investors exposure to the alpha-generating growth in China, India, South Korea and Southeast Asia, by utilizing an active investment strategy and local managers in each region.  

© 2016, Chinus Asset Management LLC.

CHAM Co-Founder Charles Mautz Joins “Business with China” Thought Leader Forum

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Chinus Asset Management Co-Founder Charles Mautz recently participated in a “Business With China” Thought Leader Forum, in conjunction with Arnerich Massena, GeffenMesher, Miller Nash Graham & Dunn and the Portland Business Journal.  

Mr. Mautz made the following insights into Chinese markets: 

  • Trading volumes in China are heavily retail driven, comprised 80% of individual investors.
  • Chinese regulators have pulled back from direct intervention in the stock markets and markets are now finding their natural bottom.
  • Pension reforms in China could result in an influx of $7 trillion in institutional capital into the Shanghai and Shenzhen stock exchanges, doubling the existing market capitalization.
  • While industrial growth slows, the new economy of China – including its retail and services sectors – is growing at 12%.
  • Large inflows of institutional capital into the Chinese equity markets should reduce volatility and support higher valuations.

Mr. Mautz founded Chinus Asset Management in 2008, with co-founder Pete Nickerson, to provide investors exposure to emerging Asia, by utilizing an active investment strategy and regional managers across China, India, South Korea and Southeast Asia.

© 2016, Chinus Asset Management LLC.

 

CHAM Presents at CAIS2016 in Grand Cayman

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The Cayman Alternative Investment Summit 2016 (#CAIS2016), held earlier this month in Grand Cayman, featured keynote sessions with Virgin Group Founder, Sir Richard Branson, actors Jaime Lee Curtis and Meghan Markle, Robert J. O’Neill, Team Leader Naval Special Warfare Development Group, and comedian Jay Leno.  

Chinus Asset Management CIO Charles Mautz and Managing Director Asma Chandani addressed the economic and market conditions of emerging Asia – a topic of heightened interest amidst Q1 2016's global market volatility. They noted:

  • The demographic dividend across Asia is compelling.
  • Significant wealth is being created by Asian entrepreneurs as they build companies.
  • Indian venture opportunities are attracting substantial investor interest.
  • The Chinese government has an interest in ensuring the stability of its currencies.
  • Volatility in global markets is likely to persist through 2016, as oil prices normalize and geopolitical circumstances evolve.
  • Attractive valuations and discounted P/E ratios in Asian markets present a buying opportunity at a time when CHAM managers are extremely bullish on the earnings growth potential of their portfolio companies.

CHINUS ASSET MANAGEMENT (CHAM), a U.S. West Coast based asset management firm, adopts a contrarian approach that remains confident about finding companies that are thriving in spite of any economic headwinds. CHAM actively manages strategic allocations to local managers in China, India, and Southeast Asia.

© 2016, Chinus Asset Management LLC.