By Fredrik Bjelland Portfolio Manager
On a recent trip to China and India, we were struck by the stark contrast between the two economies. In Hong Kong, Chinese investors voiced concerns about slowing growth and rising debt, while in Delhi, Indian investors were upbeat, driven by the country’s booming economy and growing capital markets. We discuss what this means for us as contrarian, value-based investors.
At SKAGEN we are fundamental and value-based long-term investors. A key part of our bottom-up investment process is to gain intimate knowledge of the companies and markets in which we choose to invest our unit holders’ capital. As such, travelling to the places where our portfolio companies are based and meeting with management in a local setting form an important part of our ongoing work. While we always return from our trips with an improved understanding of the businesses in which we invest, they also provide us with new perspectives on market opportunities, on-the-ground risks and, more importantly, the prevailing investor sentiment.
Our most recent trip to Hong Kong and Delhi could not have provided a more divergent experience.