High Risk Asia

Asia boasts one of the highest potential growth rates in the world, making the region extremely attractive to investors.

However, you may be overwhelmed by the sheer variety of Asian-focused funds out there. There are just so many variables to consider — apart from the usual categories of small-cap, large-cap, growth and value, some fund managers prefer technology plays, others like dividend-focused consumer staples, and others like financial companies. Some funds may charge performance fees, while others charge only management fees.

Each fund comes with its own pros and cons, and every decision could have lasting consequences for your portfolio. How can you know which one to choose?

 

Asia Value Managers

We have carefully curated a blend of the best Asia-focused hedge funds for you to select from – funds with management teams that we know and understand, and which have good track records.

These managers work with the overarching premise of finding value. They pursue contrarian ideas and seek out Asian companies that have fallen off the watch lists of investors, or companies that show the promise of high future returns based on valuation metrics.

 
 

Asia Low Volatility Strategies

The 2008 Global Financial Crisis made investors extremely risk averse. As a result, many investors now prefer to park their assets in cash, deposits and high grade bonds.

Unfortunately, doing so comes with a huge opportunity cost. What they gain from those investments is significantly less than what that same capital could have achieved in equity markets. Research shows that equity markets go up 70% of the time. When their fear of loss leads investors to stay out of equity, they instead miss out on all those gains.

But what if there was a strategy that could expose investors to equity-type performance while focusing on risk reduction? This can in fact be achieved by constructing a diversified portfolio of low-volatility stocks with low correlation to each other and a high dividend payout.

Strategy Highlights:

  • Aims to offer attractive risk-adjusted returns and deliver a regular income level significantly higher than the index.

  • An innovative approach that focuses on risk reduction by investing in Asia ex-Japan stocks based on their volatility, correlation and dividend profiles.

  • Seeks to construct a diversified portfolio of stocks that demonstrate low volatility and low correlation to each other.

  • Provides a complementary solution to pure fundamental stock-picking strategies.

Why this strategy?

  1. Stock picking based on risk approach, focusing on risk reduction by investing in Asia ex-Japan stocks based on their volatility, correlation and dividend profiles using proprietary quantitative models.

  2. Active oversight and risk management by portfolio managers.

  3. Complementary to pure fundamental stock picking strategies.

  4. “Win more by losing less” attractive risk-adjusted return.

  5. Consistent dividend income stream.

Schedule a Consultation

If you like investing in Asia and want to find out how these strategies can enhance your returns, get in touch with us.