Performance

Mid-caps help Cape China's 16.7% gain

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Strong performance in April by several of the Cape China Fund's top 10 holdings helped it to gain 16.7% for the month; year-to-date the fund was up 23%. Cape Asset Management's Charles Lo cites hefty gains by three mid-cap stocks, Hong Kong-listed BYD (up over 40%), Digital China Holdings (up 30%) and Weiqiao Textile Co (up 34%) as important contributors. Such stocks became heavily sold down in the crisis and, having never been expensive during the boom, went to unreasonably low levels before bouncing back strongly in April, he says.

The fund has been fully invested since October,