LO Funds
China High Conviction

LO Funds - China High Conviction is an actively managed long-only China equity strategy in place since 3 August 2020. It seeks to outperform the MSCI China All-Shares ND index over the long term, without necessarily tracking it over the short term.

The investment approach consists of 3 distinct themes (Growth, Value and Turnaround), combined with a fundamental bottom up stock-picking process. The portfolio will usually be relatively concentrated (with a maximum of 50 companies deriving a significant portion of their revenues from China). Each position is further constrained by a minimum and maximum position size of 1% and 10% respectively. The portfolio managers monitor risk exposures closely at the portfolio level to ensure the portfolio is not taking on excessive risks. Alongside this, independent teams manage investment risks and monitor operational risks.