Precy Dumlao, Opalesque Asia:
The ASEAN markets have been showing signs that the region’s economy are recovering from the June market sell-off, said Singapore-based research firm GFIA. The majority of Asia-ex Japan fund managers with an ASEAN-concentrated portfolio generated subdued returns last month.
GFIA founder Peter Douglas said in his monthly commentary, "Firth’s (1.0%) portfolio was well cushioned by its position in Korea, Hong Kong and China which also happened to be the main drivers of performance for Flowering Tree’s Ashoka fund (4.8%).The fund’s short book has shrunk to a historic low level of 38% which is expected to normalize over the next few months as new interesting short positions are initiated."
Concerns over a slowdown in China outweighed the stabilizing effect of the July election in Japan that also resulted with Japanese fund managers outperforming their market benchmarks during the period.
The average fund in the Eurekahedge Japan Index gained 0.9%. The small-cap index TSE Mothers performed well, gaining 12.4%. Accordingly, small cap specialists such as Hayate Long-Short (4.5%) took advantage of the easing of market momentum as fundamentals came back into focus, increasing their net exposure in firms with potential growth stories, GFIA said.
It added that managers who had previously expressed a bearish view through low or neutral net ......................
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