High-profile stock picker Qiao Ma is planning to tip a Hong Kong-based consumer brand player when she fronts the annual Sohn Hearts & Minds conference next month.
Ma, a portfolio manager for the Asian Equities Fund at Cooper Investors, is not yet revealing the name of the company, but she says it is a globally recognised consumer brand.
In her first appearance at the conference last year, Ma picked the world’s largest sportswear maker, Hong Kong-listed and China-based Shenzhou International, which makes clothing for Nike, Adidas, Uniqlo and Puma.
That company’s stock has notched double-digit gains over the year, despite being hit by supply chain issues as a result of Covid, including congestion at the port of Los Angeles and factory shutdowns in Asia.
“The company we are thinking about pitching this time is domiciled in Hong Kong but is a fantastic global company,” Ma said in an interview with The Australian.
“It’s a global consumer demand company supplying some best-in-class products. It owns its own brand and its own production processes.”
Ma, who was born in Beijing and grew up in southern China, speaking both Mandarin and Cantonese, before studying at the University of Virginia and doing an MBA at Harvard, is a big fan of Hong Kong and selected China stocks. She says the recent controversy about announcements by the Chinese government penalising companies such as Alibaba and Tencent and cracking down on online gaming and educational stocks has created buying opportunities. The Asian Equities Fund has just over 40 per cent of its assets in companies from Hong Kong and China.
“The fund has been investing in China since before the global financial crisis,” she says.
“Every few years there is a loud bang and a scream in the investor community which says China is no longer investable. When we hear that, we like it.
“This is probably the cheapest I have seen Tencent in a decade.”
She runs a high conviction fund that has 30 Asian stocks in its portfolio, including about a dozen from China.
Ma says there has been a “massive leap forward” in the management quality of many private sector Chinese companies.
“There are management teams which have their motivation incentives very well aligned with investors,” she says.
“They have very high standards of integrity and very high levels of capability.
“We’ve seen them navigate the trade war with [former US president Donald] Trump, and then Covid-19 and a lot of these regulatory issues – some of which is impactful and some of which is noise. There are some management teams doing a really good job steering the ship.”
Ma says the fund does not “invest in China” per se, but picks specific stocks in the country, particularly in the areas of IT and consumer brands, in what it believes are good companies with good management.
“We are not ‘investing in China.’ We are investing in very specific businesses led by really great people,” Ma says.
She says Cooper’s Asian fund holds shares in the Hong Kong Stock Exchange, which it believes will become an increasingly important place for companies from mainland China to list as they become more wary of US stockmarkets.
“Hong Kong will remain a very dynamic place,” she says. “We think with all the volatility and uncertainty, Hong Kong will become the place of preference for Chinese companies to list.
“China is the second-largest economy in the world. Half of the Fortune 500 companies come from China every year. These companies don’t have a great option to list elsewhere.
“As a financial market, the importance of Hong Kong is not diminished. For some companies it is the only way they can access international capital.”
Ma points out that the Hong Kong market is now particularly attractive as investors from mainland China can invest directly into shares listed on the Hong Kong Stock Exchange through the “stock connect” system, set up a few years ago between Hong Kong and China.
Ma says the performance of her Sohn stock tip last year, Shenzhou International, is proof of her argument about the high-quality management of some companies in mainland China these days.
She says the company is keeping its investors up to date with details of the port congestion in Los Angeles, a key shipment area for its goods. “It was not their fault but its chairman, Ma Jianrong, came out and apologised that the company was having a bit of a hiccup,” Ma says.
She says the company provides a detailed breakdown of how many weeks it expects port issues to go on for and how it will affect the company.
“When factories in Vietnam and Cambodia were temporarily closed because of Covid, we got almost a weekly update on when they would be coming back online,” Ma says.
Ma, who worked on Wall Street as a fund manager before moving to Melbourne after marrying an Australian, has been a long-time fan of the Sohn Hearts & Minds conference.
The conference started in New York in 1995 to commemorate the life of Ira Sohn, a Wall Street fund manager who died at the age of 29 from cancer.
A group of his fund manager friends decided to get together and sell tickets to a conference where they all tipped their favourite stock, to raise money for children’s cancer research.
The idea of the conference has spread around the world, with top fund managers tipping stocks to raise money for medical research.
This year’s conference in Australia, its second online as a result of Covid, will feature a video appearance by Warren Buffett’s colleague, Charlie Munger.
The Australian conferences have raised more than $30m for medical research since they started in 2016.
“I was a big fan of the Sohn conferences in New York,” Ma says. “They were at the Lincoln Centre. I used to go every year. I have been to a few in Hong Kong but the conference in Australia is my personal favourite.”
Ma’s career on Wall Street included working for Lehman Brothers from 2006 to 2008. She was there when it collapsed in the wake of the global financial crisis.
She says the experience gave her first-hand insight of the dangers of hubris in company management. “We all, including myself, thought we were going to sail through unscathed,” she says.
She says Cooper Investors has a “bottom-up” approach to investing, which is looking for management teams that don’t have hubris and have a strong sense of “humility”.
She says this is a key criteria in assessing companies.
“When we are looking at stocks in Asia we don’t think about the risks of the whole region,” she says.
“We don’t think all companies are positioned the same. Some companies are positioned much better than others in their industry. We make it our mission to find those companies.”
This article was originally posted by The Australian here.
Licensed by Copyright Agency. You must not copy this work without permission.
Regal Funds Management co founder, Phil King is recommending that investors sell shares in travel company Flight Centre, arguing that the stock has rebounded too strongly since its lows of last year with the company still facing headwinds with the shift to online travel bookings.
Builders Union’s Markus Bihler has picked the freshly listed London-based fintech Wise as his top pick at the 2021 Sohn Hearts & Minds Conference.
Joyce Meng of Fact Capital says investors should take advantage of growing skincare spends.
Charlie Munger, the 97-year-old investor and polymath who has been the trusted sidekick of Warren Buffett for decades shared his thoughts on markets, investing and geopolitics in a wide-ranging interview broadcast as part of the Sohn Hearts & Minds Investment Conference.
Atreides Management’s Gavin Baker has picked cryptocurrency exchange Coinbase Global at the Sohn conference, believing in its growth opportunities as more people embrace the crypto world.
Pinnacle Investment Management is a multi-boutique fund manager that owns stakes in 16 Australian fund managers across Australia of between 23 to 49 per cent. It is led by CEO Ian Macoun who is said to be famous for picking star portfolio managers.
There is no bigger or unsolved problem than taxes which remains consuming, complicated and error prone. Businesses still manage their taxes with a combination of pen and paper and excel and the complexities are only increasing. Babak Poushanchi says Avalara, based in Seattle, is solving the problem.
Peter Cooper, the founder of Cooper Investors, HM1 Core Fund Manager, shares his learnings from Charlie Munger.
Jay Kahn’s Flight Deck fund seeks out stocks in “roads least travelled”, and Kahn reckons it has unearthed a “multi-bagger”: Bengo4, which he describes as Japan’s DocuSign.
Regal Funds Management has upended its short selling approach to combat the pressures of a rising bull market, focusing instead on share price blips that have included so-called meme stock GameStop, according to chief investment officer Phil King.
Regal Funds Management’s Phil King says it’s a tough market for short sellers but it didn’t stop him from nominating a prominent one at Sohn Hearts and Minds today: FlightCentre.
It’s an “age of instant gratification”, according to Tekne Capital Management’s Beeneet Kothari, and he is picking restaurant delivery group Delivery Hero to ride the innovation in last-mile logistics in the $US1 trillion takeaway food sector.
Berkshire Hathaway’s veteran 97-year-old investor Charlie Mungert warns that he views today’s markets as wildly overvalued in places.
Berkshire Hathaway vice chairman Charlie Munger, a longtime partner of Warren Buffett, has made his first appearance at the sixth annual Sohn conference in Australia on Friday.
Firetrail’s Eleanor Swanson believes Megaport is currently one of the best stories on the sharemarket, and has the potential to join the ranks of Australian-founded technology companies such as Atlassian and Afterpay.
Munro Partners’ Nick Griffin has pitched Nasdaq-listed Onsemi as his stock pick at this year’s Sohn Hearts & Minds conference, labelling it the ‘hidden hero’ of the path to decarbonisation.
Eley Griffiths small-cap portfolio manager David Allingham has picked Ian Macoun’s multi-boutique funds management group Pinnacle Investment Management as his top stock pick for the Sohn Conference 2021.
Regal’s Phil King says he’s the only Australian hedge fund manager brave enough or silly enough to return to Sohn Hearts & Minds to pitch a short stock during one of the biggest bull markets of all time.
Fresh from picking last year’s 180 per cent gainer Nasdaq-listed Bill.com and other big winners such as DocuSign three years ago, Babak Poushanchi is back at Sohn in 2021 with another stock pick. This year the Cota Capital founder and tech-focused investor has named Seattle-based tax software business Avalara as his top pick.
An experienced investor with a track record of short selling, King will be the only fund manager on the day tipping a short stock at the annual Australian Sohn Conference on Friday.
Yen Liow, managing partner of Aravt Global has pitched Gitlab, a founder-led software business that is focused on DevOps at the Sohn Hearts & Minds Conference. Liow stumbled upon the company while researching Atlassian, which itself generated 20 times the return on capital since its IPO.
Firetrail Investments’ Eleanor Swanson has tipped ASX listed telco software company, Megaport, as the best stock for 2022 at the annual Sohn Hearts & Minds Conference.
Moderna co-founder Robert Langer has said he’s confident the company’s vaccine will be effective against the omicron strain of COVID-19, but not as effective as it is against the original variant. “But that doesn’t mean it won’t be effective,” said Mr Langer.
Spotify’s market-leading position in the future of audio will catapult the business to among the so-called FAANG stocks alongside the likes of Apple and Amazon, powering revenue growth and its share price, according to Hamish Corlett, co-founder of TDM Growth Partners.
Hamish Corlett is the only stock picker in the history of the Sohn Hearts & Minds Investment Conference to pitch exactly the same company twice.
From e-signatures to last-mile logistics and facials, the annual conference showed that waves of disruption continue to break in different ways across different sectors
Fund manager, Qiao Ma has tipped Hong Kong based global power tools and outdoor equipment company Techtronic Industries at the Sohn Hearts & Minds conference on Friday.
Moderna co-founder Robert Langer has suggested the vaccine maker will know within days if its mRNA Covid-19 vaccine is effective against the new variant, Omicron, as he predicted future mutations and the likelihood of the virus becoming “something life flu” that will require regular vaccine boosters.
Griffin expects the car market will be 50 per cent electric by 2030. He likes Onsemi in particular because of its management, and the fact it is being priced as an industrial semiconductor producer.
Beeneet Kothari of Tekne Capital Management has chosen Delivery Hero as his stock pick at the Sohn Hearts & Minds conference, saying it is the best way to play the innovation and last-mile logistics trend.
Cooper Investors’ Qiao Ma says that despite cordless power tools provider Techtronic Industries being an industrials company, it’s really a technology company at heart.
FACT Capitals' Joyce Meng pitched Beauty Health Company at the sixth annual Sohn Hearts and Minds Conference. Meng is forecasting 30 per cent durable and organic growth driven by accelerating equipment placements and a price target of $40 a share for 40 per cent upside.
Moderna’s co-founder expects the biotech’s vaccine will be at least somewhat effective against the Omicron variant, but says his company can quickly pump out variant-specific boosters for new strains when needed.
Jay Kahn of Flight Deck Capital has pitched Nikkei-listed Bengo4 as his stock pick for this year’s Sohn Hearts & Minds conference, following the recent acceptance of the electronic signature in Japan due to the Covid-19 pandemic.
Moderna will know in just over a week how effective its COVID-19 vaccine is against the omicron strain, according to the company’s co-founder Robert Langer, who presented at the sixth annnual Sohn Hearts and Minds Conference.
Gavin Baker, managing partner and CIO of Atreides Management, a $4.5bn crossover firm based in Massachusetts, recommends investors hold Coinbase, a platform for investing in cryptocurrency.
Yen Liow, founder and portfolio manager of Aravt Global, has a bullish take on Nasdaq-listed software development company GitLab, which he expects to soar in the coming years.
Investment legend Charlie Munger says the current climate on global markets is crazier than the dot-com bubble two decades ago, as he savaged the boom in cryptocurrencies as insane and backed China’s ban on the digital assets.
Builders Unions', Markus Bihler pitched Wise at the sixth annual Sohn Hearts & Minds Conference. Over the next five years, the fund manager expects the target share price to hit 30 pounds by 2027, a 27 per cent five year annualised return.
For all that heavyweight finance names Michael Walsh, David Paradice, Matthew Grounds and Gary Weiss have in common professionally, one thing they can’t seem to find consensus on is music.
Fund Manager Mark Nelson of Caledonia to interview Berkshire Hathaway's Charlie Munger at the sixth annual Sohn Hearts and Minds Conference.
Eleanor Swanson of Firetrail Investments sat down with Equity Mates Media ahead of this year's conference. Eleanor shares the story of her first investment, breaks down the small cap landscape and shares some of the best companies that she's come across during her time in the markets.
Babak Poushanchi, one of the legends of the Sohn Hearts & Minds conference, has opened up about his approach to riding the disruptive technology boom.
Conference Manager Joyce Meng's FACT Capital is proof that the existing Wall Street model could be wildly improved upon.
Cota Capital’s Babak Poushanchi emerged the top picker from the 2020 Sohn Hearts & Minds Conference, with his pick, bill.com, share price up more than 200 per cent.
Yen Liow of Aravt Global sat down with Equity Mates Media ahead of this year's conference. Yen shares the story of his first investment, Aravt's investment philosophy, his thoughts on the future of the payments industry and why he's excited to be a part of the Hearts & Minds family.
Returning Conference Manager Beeneet Kothari talks 'quick commerce', a topic at the heart of his stock pick for the 2021 Sohn Hearts & Minds Conference.
Hearts and Minds Investments Limited (ASX:HM1)'s Chief Investment Officer Rory Lucas and founding Hearts & Minds supporter Phil King of Regal Funds Management recently spoke with the hosts of You're In Good Company, an Equity Mates Media podcast.
Returning Conference Manager Nick Griffin of Munro Partners attempts to capitalise on the climate change thematic that it has declared as the biggest investment opportunity since the internet.
New Conference Manager Eleanor Swanson was instrumental in convincing the investment team at Firetrail Investments to buy into AfterPay.
As a rising star within Firetrail Investment Management, Eleanor Swanson was instrumental in getting the firm to back Afterpay when it was trading at just $20, winning over the senior investment managers.
Eley Griffiths Group portfolio manager David Allingham says the Sohn Hearts and Minds Conference is the Australian investment management industry’s answer to the Woodstock Festival.
Returning Conference Manager Qiao Ma is planning to tip a Hong Kong-based consumer brand player when she fronts the annual Sohn Hearts & Minds conference next month.
Returning Conference Manager Beeneet Kothari sat down with Equity Mates to discuss his first investment, views on China and Cryptocurrency, and why he loves being involved in the Sohn Hearts & Minds Conference.
The payments sector has entered a golden era, says Avart Global’s Yen Liow, who hails from Melbourne.
Professor Robert Langer, the billionaire co-founder of vaccine maker Moderna says that early investors in the biotech startup should share the credit for the development of the company’s coronavirus vaccine.
The powerful technology that has enabled mRNA vaccines to save millions of lives during the coronavirus pandemic has much broader potential, according Bob Langer, one of the co-founders of Moderna.
Moderna co-founder Robert Langer says vaccine development for a range of diseases – not just Covid-19 – will be one of the biggest trends among biotechnology in coming years.
Beeneet Kothari admits it’s been a ‘bloodbath’ for Chinese tech stocks this year, but there are two good reasons he thinks the sentiment will shift.
Legendary investor Charlie Munger to headline Sohn Hearts & Minds 2021 conference.
Charlie Munger, who will headline this year’s Sohn Hearts & Minds Conference, places one quality above all else: patience.
Charlie Munger, American billionaire investor and vice-chairman of Berkshire Hathaway to headline Sohn Hearts & Minds 2021 Conference.
Warren Buffett’s right-hand man Charlie Munger is the headline act at Sohn Hearts and Minds this year and the 97-year-old investment legend is expected to offer forthright views on global financial markets which are now at a critical juncture.