TRISKELE CHINA FUND invests in Chinese listed companies, with fundamental stock selection based on value as well as growth. It is a long-short absolute return fund aiming relatively low risk.
Investment Strategy
The principal investment objective of the Fund is to achieve long-term capital growth by investing primarily in companies that have growth potential in Hong Kong, China and Taiwan. The Company will also invest in companies listed in other markets which have substantial exposure to China.
The fund uses bottom up stock selection, with the emphasis on quality growth and reasonable valuations. The stock selection process will be conducted through an intensive process of company visits, and continuous research on changes in the companies, their industries, competition envelopment and macro conditions. Apart from using both long and short strategies, the portfolio will also be focused in terms of the number of stocks so that the Investment team can keep track of the Company’s investments.
Investment Process
IDEA GENERATION The fund invests in companies that are listed in Hong Kong, China and Taiwan, and companies that have substantial exposure to China listed in other stock exchanges .All these companies would be screened by liquidity, market capitalization and sector evaluation.
EVALUATION OF STOCKS The fund performs fundamental analysis based on internal and external database, research resources and company visits.
INVESTMENT SELECTION Long Principle would be used when the company is undervalued, has sustainable growth prospective and is strengthening in terms of position or market share in the industry. However if the company is overvalued, shrinking in market share, runs a low value-added business or has a poor management, the fund would adopt the Short Principle.
The fund maintains full earnings model for its investment with 3 years forecasts and perform valuation comparison in the sector and with other global peers. Regular meetings with company management is conducted to review latest corporate developments and investment decisions.
PORTFOLIO MANAGEMENT
- an individual stock will not account for over 10% of NAV in the fund
- 0-150% long position, with 30-40 stocks
- 0-100% short position, with 3-10 stocks and index futures
Term Sheet
| Triskele China Fund |
| Fund Registration: |
Cayman Island |
| Subscription: |
Monthly Dealing |
| Minimum subscription: |
US$150,000 |
| Minimum subsequent subscription: |
US$100,000 |
| Redemption charge within one year: |
3% |
| Redemptions: |
Monthly upon 2 months notice |
| Minimum redemption: |
US$100,000 |
| Management Fee: |
1.5% p.a. payable monthly |
| Allocation of Profits: |
20% incentive fee with high water mark |
| Administrator: |
Fortis |
| Auditor: |
PricewaterhouseCoopers |
| Legal Counsel: |
Deacons (HK & Int'l); Campbells (Cayman) |
| Prime Broker: |
Morgan Stanley |
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