Beini Zhou, Portfolio Manager, Matthews Asia met with Julie Cooling, Founder & CEO, RIA Channel to discuss his strategy behind value investing in Asia.
Matthews Asia, the largest Asia focused active shop in the U.S., manages over $30 billion in assets. Three decades of experience, a robust research team, and a boots on the ground mentality are just a few of the things that differentiate Matthews from other mutual fund companies.
While many of the firm’s strategies revolve around growth investing, Zhou runs the Matthews Asia Value Fund. “The timing couldn’t be better for value investing,” says Zhou on recent volatility in the Asia market. Unlike the majority of U.S. large caps, most companies in China are state or family owned, meaning there is not necessarily a form of corporate governance or a professional CEO on board. Detailed qualitative research, including meeting with these companies face to face, is a big part of the stock selection process.
Going into this year, Zhou has increased allocation to the tech sector based on falling valuations in 2019, and says as a value investor, he is “opportunistic in reaction to bad news.”
To learn more on this topic, head to MatthewsAsia.com