After 10 Years How long is the long-term? Most people probably say 10 years. It was 2013. China’s stock markets were even more depressed than today. Shanghai Stock Exchange Index was trading at 9.0x (it closed at 11.7x in 2023).
Very interesting and darn impressive! You said these 10 names were picked "rather randomly" yet these represents 10 names that you'd own over ten years - so it sounds like a pretty selective group to me. How to reconcile this? Curious to hear your criteria and what kind of qualitative insights, if any, went into the selection. Thanks!
It was just a small model portfolio and we didn’t scale up because we couldn’t find a manager to implement. So, in this sense, it was a failure. The original list of 20-30 companies were provided by one China based manager and we just picked 10 cheapest stocks from the list. So, it was not completely random. (But random enough?) You need a quality screening for this but value screening was more important.
Interesting piece! Would love to hear how the team thinks about this stock picker from a manager selection perspective based on your selection framework.
China 101010 is like a smart beta but more to show hoe a long term approach could outperform in the long run. So, i expect our active managers should outperform this.
Very interesting and darn impressive! You said these 10 names were picked "rather randomly" yet these represents 10 names that you'd own over ten years - so it sounds like a pretty selective group to me. How to reconcile this? Curious to hear your criteria and what kind of qualitative insights, if any, went into the selection. Thanks!
It was just a small model portfolio and we didn’t scale up because we couldn’t find a manager to implement. So, in this sense, it was a failure. The original list of 20-30 companies were provided by one China based manager and we just picked 10 cheapest stocks from the list. So, it was not completely random. (But random enough?) You need a quality screening for this but value screening was more important.
Interesting piece! Would love to hear how the team thinks about this stock picker from a manager selection perspective based on your selection framework.
China 101010 is like a smart beta but more to show hoe a long term approach could outperform in the long run. So, i expect our active managers should outperform this.