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Raymond Wong Benedicte Gravrand, Opalesque Geneva:

The investment opportunity set in Asia, according to some of the managers at the recent Opalesque Hong Kong Roundtable, is especially interesting in fundamental equity stock-picking and in the short-term financing of Greater China SMEs. They believe these are decade-long prospects.

According to Raymond Wong, founder and managing director of Cheetah Investment Management, the environment in Asia was not favorable this year for equity strategies, but there are plenty of stock-picking opportunities.

"That is the reason we chose to focus on long-biased stock-picking in Asia," he said. "A lot of strategies that work globally cannot be executed in Asia because of the lack of instruments and the lack of capital structure that you see amongst listed corporates in the region. CTAs and macro work in Asia but a lot of other strategies like mortgage backed arbitrage or simply merger arbitrage will not. Given the information inefficiencies of the Asian markets, we still think the best low-hanging fruit is stock-picking."

Since the 1997 Asian crisis, he continues, most economies in Asia have been stable in terms of GDP volatility. But equity markets have bet a lot more volatile than developed markets’, mainly because they are prone to foreign fund flows, which don’t accurately reflect the real fundamentals of the economies and corporate profits......................

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