All China Equity Strategy

Capturing the breadth and diversity of opportunities offered in Chinese equities.
Capturing the breadth and diversity of opportunities offered in Chinese equities.

Strategy overview

The Strategy aims to provide long-term capital growth primarily through investment in equities or equity-related securities issued by Chinese companies listed predominantly in Hong Kong and China but may invest anywhere in the world.
Key Features
  • A holistic approach to fully access the real Chinese market by investing in China A shares, B shares, H shares and ADRs for best ideas
  • Managed using 4Factor’s consistent and repeatable evidence-based investment process
  • High conviction portfolio: style and size agnostic with no benchmark constraints
  • Specialist China team based in London and Hong Kong with a strong track record of picking stocks in China
Our focus is on generating alpha within the fast-growing Chinese equities market by combining disciplined fundamental research with local knowledge.
Greg Kuhnert, Wenchang Ma and Joanna Yang

Investment approach

01

We believe an ‘All China’ approach offers the broadest opportunity set and allows us to allocate dynamically between both onshore and offshore markets.

02

We search for high quality, attractively valued companies with improving operating performance that are receiving increasing investor attention.

03

We believe applying a disciplined, repeatable, bottom-up investment approach leads to long-term alpha generation.

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General risks:
Past performance is not a reliable indicator of future results, losses may be made.

Specific risks. 
Geographic/Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Derivatives: The use of derivatives is not intended to increase the overall level of risk. However, the use of derivatives may still lead to large changes in value and includes the potential for large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company. Concentrated portfolio: The portfolio invests in a relatively small number of individual holdings. This may mean wider fluctuations in value than more broadly invested portfolios. Emerging market (inc. China): These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

Important information
All information is as at 31 March 2020 unless otherwise stated.