Asian Century Quest, a New York-based hedge fund managing a USD272million e
Asian Century Quest, a New York-based hedge fund managing a USD272million equity portfolio focused on Asian equities, in particular China, is bullish on a number of undervalued Chinese equities according to its most recent SEC 13-F filing for Q3 reported Seeking Alpha this week. Apparently, China makes up almost two thirds of the portfolio, with 25 per cent held in Indian stocks and the remaining 10 per cent to 15 per cent in US equities with a focus on Asia. The fund uses bottom-up fundamental analysis to determine positions for its equity l/s strategy. Currently, the following undervalued Chinese equities are favoured by ACQ: Home Inns & Hotels and China Mobile Ltd. Home Inns & Hotels manages a chain of economy hotels in China and has a price to book ratio of 2.4 compared to averages of 22.5 enjoyed by peers in the hotels group. ACQ added USD11million to its USD9million position in China Mobile Ltd (CHL) held in Q2. CHL trades at a P/B ratio of 2.0 compared with averages of 14.7 and 3.8 for its peers. Fidelity Investments also bought an additional 1.5million CHL shares in Q3. Other Chinese equities that ACQ is bullish on include New Oriental Education & Technology ADS, Melco Crown Entertainment and YouKu.com Inc. Asian Century Quest was founded by Brian Kelly in 1985. In addition to New York it has offices in Tokyo and Hong Kong.
