Mr Cheah Cheng Hye is the founder of Value Partners - a Hong Kong based value shop focusing on investment in China.
1. Great emphasis on culture. Every new joiner is required to sign the "My Promise" - like the Johnson & Johnson Credo and Mr Cheah adopted various rituals to brainwash his men. The whole idea is that you can't have a good product without good people.
2. Try to move away from star fund manager approach and "industrialise" the product manufacturing process. Mr Cheah divided the investment process into several skills. He mentioned one hard skill to train is "decision making" and a useful way is the Buddhist "selflessness" approach.
3. Keep the investment universe aways from large cap SOEs and do detailed research on private enterprises. Often use private placement to gain advantage. However he cautions that diversification is essential to manage the risk and his fund generally owns 100 or so names.
Thursday, May 12, 2011
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