Top-Down – Macro Economy View
- Analyze the global and China’s macro economies and financial markets to formulate top-down views
- Identify the sectors which affected most from new evolvement of the dynamic economy
- Business Model Study: companies with high barrier entry, high competitiveness, strong financial balance sheets, and high growth
- On-site Visits: due diligence on management team, company financials, value chain and competitive advantages etc.
- Valuation: identify the company’s fair value
- Monitor and adjust the portfolio timely
Proper diversification, credit risk and liquidity risk management
- The Manager believes securites have inherent fair values, the price will converge towards its inherent value in the long term.
- Reward/ Risk ratio
Volatility create short term opportunities
- Business cycle and policy interrupt creates big opportunities.
- Liquidity and fund flow
- Securities prices always mispriced due to market noise