Value strategy lifts China Alpha 3.88%


The China Alpha II Fund got the year off to a good start with a 3.88% gain for the month. The China Alpha II Fund avoided chasing the month's short-term rally, as chief investment officer James Wang and portfolio manager Kelvin Lau continued to conservatively manage gross and net exposures and focused on value chain investing.

On the expectation that China's economic data and corporate earnings will continue to deteriorate in the short term, despite economic stimulus measures, the fund's focus will be on selling short-term calls for under-valued long-term investment holdings; going long telecom operators and pharmaceuticals; and