Hedge funds root for Vietnam, China R&D among Asia picks at Sohn conference
08/09/2022 09:04
By Summer Zhen
HONG KONG, Sept 8 (Reuters) - Hedge fund managers in Asia
are bullish on Vietnam's growth prospects and selectively
looking to invest in emerging technological opportunities in
China.
At the annual Sohn investment conference in Hong Kong this
week, hedge fund managers spoke about how to profit from
Vietnam's fast-growing economy and prospects for a boost in
domestic consumption amid the simmering Sino-U.S. tensions.
Their other top picks in the region included an Apple
supplier and a caller identifying app.
Seth Fischer, founder and chief investment officer of
activist investor Oasis Management, said he is long Vingroup
VIC.HM , Vietnam's largest conglomerate and a proxy for the
economy.
Fischer’s picks include the exchangeable bonds issued by the
group and its hospitality unit Vinpearl as well as Vinhomes
VHM.HM stocks – a real estate development unit of the group.
"Vietnam is like 20 years behind China, population is really
young," said Fischer, who is a long-term investor in China and
Japan.
He said the demand was coming from people upgrading their
own property rather than buying a second home.
The housing supply in Vietnam cannot catch up with the
demand, Fischer added, which is fundamentally different from the
property crisis China is facing.
Rajesh Sachdeva, CEO and founding partner at Singapore-based
Flowering Tree Investment Management pitched Vietnam Prosperity
JSC Bank at the conference, touting its Alipay-like ecosystem.
Sachdeva believes the private bank is likely to continue to
gain market share against its state-owned competitors and said
it is now among the manager’s top 5 positions, rising from top
10 positions in 2018.
Fund managers also pitched companies in emerging sectors
with strong research and development capabilities.
Jojo Hu, founder of Hong Kong-based Pacific Crest Partners,
pitched China’s “little giant” -- Sunresin New Material
300487.SZ , a leading adsorption resin producer listed in
Shenzhen, predicting a 1.3 times return on the stock by 2025.
"For investments in China, we have entered into a new stage.
There are fewer good ideas in internet and consumer space. Now
we must look for companies with similar characteristics in
emerging sectors," said Hu.
Iris Wang, founding partner & CIO of TruMed Investment
Management is bullish on Joinn Laboratories China 6127.HK , a
top player in China’s non-clinical drug safety assessment
market, listed in both Hong Kong and Shanghai. Wang forecasts
the company will rise between 150%-200% in three years.
Technology companies remained hot choices at the Sohn
conference, despite the sell-off in the sector this year.
Wei Luo, founder of AIIM Investment, picked Unimicron
Technology Corp 3037.TW , a major ABF substrate supplier in
Taiwan and an Apple supplier.
Nishchay Goel, founder of Singapore-based Duro Capital, an
India-focused investment firm, picked Truecaller, a
Sweden-based, India-focused caller identifying app that tackles
spam call problems and generates major revenue from digital
advertising.
Fischer told Reuters his fund has invested in some Chinese
real estate companies in recent months, both in equities and
debt. He continues to be bullish in Japan, as it is one of the
only places where inflation “might even be a tailwind”.
(Reporting by Summer Zhen; Editing by Ana Nicolaci da Costa)
((summer.zhen@thomsonreuters.com; 852-3462-7739;))