Asia Alpha finds deep value in HK-listed Chinese stocks

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Asia Alpha Capital Management’s long/short equity China-focused hedge fund did well again in October, delivering 8.47% during the month in a strong follow-up to its 9.6% gain in September.

The two consecutive months of outperformance brought year-to-date returns for the deep-value driven strategy – which targets cyclical, out-of-favour stocks trading at distressed valuations – to a robust 22.71%.

Christopher Yue, founder and portfolio manager of Asia Alpha, says exposures on property developers, technology/internet, commodities and consumer-related companies drove returns this year.

The fund’s concentrated portfolio of 30 stocks also includes financials, Macau gaming, shipping, healthcare and energy companies.