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Value Partners has established one of the most successful investment management teams in the Greater China region under the leadership of Cheah Cheng Hye, the company's co-founder, Chairman and Chief Investment Officer.
Most of the handpicked investment professionals, who form the core of this team, have been working together day-to-day for an average of up to ten years at Value Partners in a highly collaborative and open environment. In line with the company's policy of training fund managers from first principles, many of them have risen through the ranks to assume leadership roles today.
This high level of stability in personnel is a rare commodity in the world of fund management and one which we believe contributes greatly to achieving consistent excellence in investment management.
Structure of investment team
All our investment team members contribute their ideas to all funds ensuring that each fund benefits from the firm's investment talent. However, each individual fund has a "caretaker," known as portfolio supervisor, who is typically a senior investment team member. The portfolio supervisor is responsible for looking after the fund's well-being, thus ensuring that every fund receives individual attention despite the emphasis on team approach.
The investment team is headed by the CIO, who is supported by the senior fund managers. The CIO and senior fund managers each has the assistance of fund managers and analysts working under them. The structure is based on the forming of small units.
The actual process of research and investment is implemented at the small unit level. Each unit leader has been delegated with decision-making authority to conduct research and investment activities, and operates with a degree of autonomy. The aim is to ensure that as the overall fund size increases, the investment process is still executed through a boutique approach, by units of fund managers who retain a flexible and entrepreneurial approach. Our slogan for our investment team is "small enough to be effective, big enough to be strong."
Proprietary bottom-up research
Value Partners adopts a generalist-specialist approach to the allocation of research responsibilities. This means our fund managers and analysts do not cover specific sectors but instead function as experts on individual companies.
A strong emphasis is placed on proprietary research at Value Partners, with the majority of executed investment ideas generated in-house.
To ensure the risks being taken in the management of portfolios is consistent with stated investment objectives, Value Partners has constituted a Risk Management Committee which ensures risk management is properly performed at three levels:
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At the stock level, individual investment ideas are constantly monitored by fund managers and analysts to ensure the company's value investing principles are adhered to. |
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At the portfolio level, regular tests are carried out to assess the overall risk level in terms of liquidity, concentration, credit and counterparty risks. This allows fund managers to know and understand the levels of investment risk inherent in their portfolios. |
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At the operations level, there are detailed written policies and procedures in place, which are executed by qualified and experienced individuals who have clear reporting lines and segregation of duties. |
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