Sat, Sep 19, 2020
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Xingtai Capital finds growth opportunities in China

Thursday, September 17, 2020

For Xingtai Capital investing in China is about going beyond the headline names that everyone knows like Tencent or Alibaba. They adopt a value-driven approach to investing in Chinese growth, and believe growth will be driven by the consumer in China. Xingtai has outperformed this year by identifying unique opportunities that aren't vulnerable to outside forces like the pandemic or the trade war. Nor are they in big name conglomerates that are popular with other China-focused managers.

Xingtai Capital is a long-only investor in Chinese stocks. The strategy is fundamental, bottom-up focused and the universe is all-caps growth equities across all exchanges. The two key principals are Michelle Leung, CEO, and Bingchao Cao, CIO.

Xingtai Capital's investment team is based locally and on-the-ground in Shanghai. From there, Xingtai are able to identify value dislocations and find ideas that others have ignored or misunderstood. The team are focused on buying into the drivers of domestic growth in China with a high margin of safety. Many of these companies are therefore immune to big macro trends driving share prices elsewhere. These kinds of companies are also unlikely to fall victim to the ongoing trade war between the US and China. This year, COVID-19 ended up being a positive boost for the property management services sector as investors looking for domestic growth focused companies with high visibility rotated away from other consumer related segments.

So far, it's working. Xingtai's flagship strategy is up 32.5% year to date through August and annualising 23.4% over the last 3 years (net of fees). On September 22, Leung will be presenting an in-depth look at Xingtai's strategy for identifying Chinese growth companies in Opalesque's upcoming webinar "Diversification Matters: Outperforming Strategies".

The event is free to attend and registration is available here.

Profiles of the other speakers:

A new fund of funds eyes regulated digital currencies

A multi-strategy approach to volatility trading drives Deep Field Capital's year to date outperformance

Cayler Capital's Energy Program outperforms during a volatile year for oil

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque TV: Meet a Swiss fund manager who hedges with a difference[more]

    B. G., Opalesque Geneva: There is a quant manager in Zurich that does things a little differently, which has helped a lot so far this year. ICON Asset Management, which was mentioned in the

  2. Apollo jumps into impact investing with a new team[more]

    Laxman Pai, Opalesque Asia: Apollo Global Management is venturing into the world of impact investing, following some of its biggest peers in targeting funds dedicated to sustainability. The New York-based global alternative investment manager announced the leadership team for the new platform

  3. ESG: How ESG data affects investors' fund choices: Morningstar, New challenges to the merits of ESG investing, Deciphering the trend: Will the real ESG contenders stand up[more]

    How ESG data affects investors' fund choices: Morningstar From Think Advisor: Advisors may wonder if it is important to present sustainable fund data to clients, especially during turbulent times. The answer: Not only will that information help investors choose funds, it also will edge

  4. Opinion: Druckenmiller says inflation could reach as high as 10%, The Biden effect: Dalio on market reaction to US election outcome[more]

    Druckenmiller says inflation could reach as high as 10% From Bloomberg: The markets are in a "raging mania" and rising inflation is a big threat, investor Stan Druckenmiller said. Inflation could hit 5% to 10% in the next four to five years, Druckenmiller said Wednesday in a CNBC interv

  5. Women in Hedge Funds - The surprising profile of the perfect hedge fund manager, Profiling female hedge fund performance and noting differences, Miranda Ademaj - Risk warrior[more]

    The surprising profile of the perfect hedge fund manager From eFinancialcareers.com: What does a talented hedge fund manager look like? Is it a 28 year-old man with a bank of computer screens and a thing for protein shakes? Is it a 59 year-old man who became attached to a pet pig? Is it