Modest Money | Mar 31, 2017 01:03AM ET
Simon Edelsten has a long history in investment management, and his fund, Artemis Global Select , has 60% returns over the past 3 years that prove his mettle. Other funds focused on the same sector returned an average 44% during that same time.
Edelsten is something of an outlier in the investment manager community, because he’s brazenly bullish on China. In fact, 10% of Artemis Global Select’s money is in Chinese companies. Investors around the world are wary of China. They see the nation’s devaluation of its own currency, and dramatic increases in consumer debt load, as negative influences on its economic future.
But Edelsten isn’t invested in just any Chinese companies. He’s honed in on a few that thrive under the present market conditions. No matter what is going on in the Chinese battle against the US Dollar, or currency threats to Chinese exports, Edelsten continues to find value in this massive developing economy.
h3 What Chinese Companies Does Artemis Global Select Hold?/h3As already stated, 10% of Edelsten’s fund is in Chinese companies. Among these are The Agricultural Bank of China (ABC), China Life Insurance Co Ltd (NYSE:LFC), and Tencent Holdings Ltd (HK:0700). We’ll take a look at why Edelsten sees values in these companies.
That would not be a bad idea. Of all the available options, Investing in Artemis directly may provide the best results if recent history is any guide. For people willing to do the grunt work of digging deep into these companies (not always an easy task for people living outside of China), you may be able to uncover even greater return potential.
If you’re invested in international funds already (like Vanguard’s Vanguard Total International Stock Index Inv, for example), you’ll already be getting a lot of Tencent. Similarly, if you want Tesla, buying Tencent will get you what you’re looking for, while giving you a lot of China-heavy diversification in the bundle.
As American stocks rise to new heights week after week, I’m interested in international growth markets. I think Edelsten’s bet on China is a good one, and it’s one I’ve mirrored in a portion of my own portfolio.
What do you think?
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