Ads
May 22, 2006
Great Wall of China is no hurdle for hedge funds...
Hedge funds are leading the charge as far as investment in China is concerned. No doubt, there are great opportunities, at the same time, corruption can also prove to be dampener. You just have to careful about where and when you want to invest. Sometimes even under researched, undervalued opportunities can offer good long-term returns. In fact, China-based hedge funds gained 16.8 percent this year according to research firm, Hedge Fund Intelligence (HFI).
Coming to it, what are the things you should look out for? Mainly, the company's future cash flows, future earnings, potential re-ratings and management. Some of the attractive areas for investment are Chinese financials followed by consumer stocks. They are preferred due to the strong GDP growth in China, which is bound to grow further with the government taking active steps to promote domestic consumption.
According to Allan MacLeod, Head of Sales for Martin Currie,
The markets are less well researched than other markets, so we have a very heavy emphasis on company visits. You need to know what to look for, and you need to know your way around Chinese accounting. Experience is extremely important.
For further details...read
--
Did you enjoy this post?
Comments
Post a comment
« The lure of Cayman Islands... | Main | Hedge Fund Regulation Approved »
Syndicate
Comments