AsiaHedge / June 2009 Newsletter
PERFORMANCE: GREENWOODS ASSET MGT GOLDEN CHINA FUND
14 June 2009
Strong performance by holdings in developers, technology, media, and consumer stocks on the long side helped the Golden China fund gain 26.64% in May. The Fund continues to perform strongly in June and by June 12, the fund’s month-to-date return was 10.66%, taking year-to-date returns to 69.67%. The fund's manager George Jiang is managing the short book more actively this year, and overall the short book positively contributed to the portfolio’s return too.
Looking ahead, Jiang expects some of the H-shares to continue offering upside opportunities. With 20% of these stocks overvalued and 40% fairly valued, his task ahead is to identify undervalued China stocks with high growth potential and compelling valuations. He also sees upside potential in selected B shares, which currently account for 16% of the fund's long book, as well as ADRs. Although Jiang feels that overall, A shares are richly valued, he believes some A shares still offers good opportunities, particularly for pair trades.