Via The Value Edge
As per continuation from the previous article (here), I have decided to post my findings with regards to the Hong Kong market. The methodology used was exactly the same as the last – past 10-year financial data and only companies trading within the top 20 percentile that exhibits all the qualities are shown.
Once again, it is crucial to note that this is only part of a screening process. This rigorous screening process of using past 10-years of financial data is most likely sufficient in eliminating most risky fraudulent H-shares. That said due diligence is still required for each company to determine if the current market price has sufficient margin of safety.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More