2015年2月3日 星期二

MECHCalvin Fund Report Jan, 2015 - Being Cautious about China

Latest fund price: $1.6068 (+0.0301, 1.91%)
*new high, previous high on Nov, 2014 at $1.6053
Total Market Value: $1,497,419.56
Total units: 931,900.9058 units

Dear Investors,
2015 start strongly with new high, and the total market cap is very very close to 1.5 million, i didn't do anything, it is just the result of few undervalued stocks i brought last year start to rise, so there is not much to share in term of finance, i will only add one point, China A-shares have raised 50% within 3 months last year, i think it was over-hyped so need to be cautious about it, as the influence of China to Hong Kong will only get stronger each day.

I have been very careful with China companies, firstly most of their public data cannot be trusted, their company reports have many hidden items (corruption, bribing, fake accounting) every investors should watch out, secondly in macro view i never believe in "planned economy" 計劃經濟, i am a huge believer of free market, that the supply and demand can be self-adjusted, as the old saying, "if you want to guarantee a result, eventually you will have to make up numbers." i believe the China government get into a habit of making up numbers in order to reach their "economic targets".

For sure there are many Chinese companies want to do good, and sometimes they do come with surprises, at the moment, the China portion in this fund is less 10%, and no surprise from my Chinese picks yet, still learning to be honest, hope 2015 will come in fantastic.

regards,
Calvin

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