Quam takes multi-faceted approach to targeting value-led alpha in China
Thu Jul 18, 2013
A sharpened focus on investing at the right prices and identifying catalysts to unlock value for stocks has put Hong Kong firm Quam’s flagship China fund back on the path to success
When portfolio manager Jim Fong took the helm at the flagship
China fund of Hong Kong-based Quam Financial Services Group in
May 2012, things were tricky. The long-biased Quam China Focus
Segregated Portfolio was falling well short of its targets and
clients were becoming uneasy.
At the time, the fund was underperforming the Hang Seng
China Enterprises Index (HSCEI) and the strategy - which was
behaving like an index tracker, soaring in bullish markets and
diving in downturns - was failing the fund's investors.
To make peace with clients, Fong knew he had to correct the
fund's trajectory. Under the guidance of industry veteran and
Quam CIO Chris Choy, Fong engineered a revamp of the strategy -
rejecting trading models that put value on indices and
strengthening due diligence as a way to protect downside. The
previous strategy of picking stocks on the basis of low
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