Zen Investment Management Co is cutting its position on commodities by 30 per cent with a likely view to commence buying China and US stocks reported Bloomber
Zen Investment Management Co is cutting its position on commodities by 30 per cent with a likely view to commence buying China and US stocks reported Bloomberg this week. Speaking from his office in Shanghai, Zen Investment Chairman Jacky Cheung said that the Zen Macro Strategic Fund might start buying Asian equities including Hong Kong and India as lower commodity prices would reduce inflationary pressure, citing China’s financial and power companies as attractive in terms of their valuation. “The current valuation of stocks is really low. There’s a big probability that stocks will have a decent rally,” Cheung was quoted as saying. He believes equities will be good investments in the “second half of next year”. Silver experienced its biggest gains in 30 years last month, spiking at USD49.85 before dropping sharply. It was trading at around USD35 (May futures contracts) at the time of writing. Other commodities like oil also fell this month to leave some wondering whether the commodities bull-run could be losing momentum. According to Bloomberg, Cheung’s fund has returned 55 per cent this year to April 28. The firm manages USD77million in assets.
