Gains across a number of unrelated positions took the JF Greater China Absolute Return Fund up 4.54% in March. The fund's net position is not usually higher than 30-35%, and the month's gains came predominantly on the long side. The portfolio has a strong pro-US bias, and this helped performance in March, as did stocks playing the domestic Chinese consumption theme, says portfolio manager Howard Wang.
The outlook for Greater China is positive in the short term, on the assumption that US recovery will be faster than expected, giving a positive underpinning to global equity markets. However, given