Doric profits on its low-risk exposure


Investments in Hong Kong-listed businesses involved in Chinese domestic consumption and the education sector paid off for the Doric Asia Pacific Small Cap Fund in March, which went up 6.4%. This was achieved despite maintaining a low-risk portfolio with a net exposure of 35-40% and gross exposure of 70-75%, explains Doric's Rajesh Ranganathan.

Economic conditions are expected to remain difficult because of low end-consumer demand growth, significantly lower corporate capital expenditure and poor credit availability, says Ranganathan. However, some companies will continue to deliver double-digit profit growth and emerge stronger because of unique competitiveness, robust balance sheet and