“I’m right, and you’re smart, and sooner or later you’ll see I’m right.” – Charlie Munger. It is the China paradox. At the same time Chinese companies are growing stronger and stronger, Western investors are growing more and more pessimistic about them.
Jim Chanos says China is “Dubai x1,000”. Muddy Waters and other short-sellers are uncovering one Chinese stock fraud after the next. Western investors looking at China are seeing disturbing trends at the macro level and disturbing behavior at the micro level.
Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More
So how does one invest confidently and safely in the world’s #2 economy? This is becoming perhaps the most important question in value investing.
We spoke with Kevin Carter of Baochuan Capital about this. Based in California and China, Kevin is a longtime expert on Chinese stocks. We spoke with him about where he sees opportunities in China today and how Western-based investors can capture them.
Buffett in Beijing Report Sept 2012