Market recovery in Thailand and Indonesia has helped the Asean Small Cap Fund, run by Singapore-based Asean Investment Management, return an estimated 13.6% in July, marking its best monthly gain since its inception in 2005. Portfolio manager is David O’Neil.
The fund manager noted that July saw an unprecedented recovery in Thai small caps. As a result, the strategy’s largest position – in a Thai telecommunications company – was up 68% in July. Asean Investment foresees political risk ahead, possibly leading to a market peak in the 4Q 2010-1Q 2011 timeframe, when small caps could gain another 30-50%.