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 PE...
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