Our investment team has an established track record of identifying local managers across China, India, and Southeast Asia that aren’t widely known by investors outside their home countries. In many cases, we have been amongst the first foreign investors into many of these managers.
Our investment strategy consists of the following:
We seek locally-based managers whose on-the-ground presence, comprehensive market knowledge, deep industry and government relationships, and ability to independently evaluate the companies in which they invest give them a competitive advantage in the inefficient capital markets of Emerging Asia. Our rigorous manager research selection process enables us to source managers who excel at identifying top performing companies that the markets misunderstand, mis-value or ignore.
We actively manage allocations in two areas.
First, we vary exposure to the three regions (China, India, and Southeast Asia), increasing or decreasing exposure based on our view of the opportunities in those regions. Our allocation decisions are based on underlying manager outlooks, frequent travels to the region and real-time data from our extensive Asian network. Our portfolio positioning is often contrarian.
Second, within each region, we vary allocations to different investment strategies based on market conditions. When market valuations are compelling and we believe there is more upside potential than downside risk, we overweight more aggressive long-biased or long-only strategies that should perform better in rising markets. Conversely, when markets appear overpriced, we shift to more conservative long/short and absolute return strategies.
We selectively invest in compelling direct investment opportunities. These may include investing alongside our managers in their most attractive positions, in less liquid vehicles, and in the management companies of our managers.