Julian: The Chinese concept of a medium-sized unit

International investors are increasingly enthusiastic about the Chinese market. In 2006, Swiss Frederick Dours (Frederic durr) and French Julian Molin (Julien Moulin) founded the (Caimas, Is.) fund with initial funding of 8 million dollars, The Caimas, Is. fund now manages assets of up to 82 million dollars.

Although his office is in Hong Kong, the research and investment team is in Shanghai. "Our company is located in Shanghai, mainly for the convenience of research." "I think it is only in mainland China that we can really understand Chinese companies," Julian Molin said in an interview with the first financial news reporter. ”

Companies looking for 200%~300% growth space

"Financial quotient": Where are the main investors of your fund?

Julian Molin: Most are institutional investors, family offices (accessibility Office, a form of financial services that is very similar to private banking), individual investors, and a Hong Kong FoF. Our investors are relatively stable, there are 15 or so, fortunately, customers are constantly supplementary funds, their funds in our fund for many years.

"Financial quotient": which market is the main investment?

Julian Molin: Mainly invest in Chinese companies listed in Hong Kong, Singapore and the U.S., and invest in some non-Chinese companies listed in Australia or Indonesia, but they may be in China, especially some energy companies. Some mining companies, for example, rely almost entirely on the Chinese market, because they export their products to China, so you need to know the real-time dynamics of China to finally decide whether to buy the company or not.

"Financial quotient": For these markets there is no specific allocation ratio?

Julian Molin: No. We do not specify the proportion of this market investment, the proportion of that market investment. More on the basis of stocks. If we find that there are 20 very good listed companies in a A-share, then we would be happy to put all the funds in a shares. But for now, we have found some good and cheap listed Chinese companies in China, Hong Kong and the US market.

"Financial quotient": Do you prefer medium stocks? Why?

Julian Molin: Yes, we tend to invest in midsize stocks because that makes us different from other investors. These companies tend to have very attractive stories, but many will not follow them, and some large institutional investors are less concerned about the details of these companies. We can look for the market to ignore the investment target.

"Financial quotient": What is your specific definition of medium stock?

Julian Molin: It's hard to say, vague about a company with a market capitalisation of 1 billion to 6 billion dollars. They may be listed in Hong Kong, China, Taiwan, or Shanghai or Shenzhen, as well as Singapore and the United States. We are now looking at two companies listed in Hong Kong, one is the construction class, one is the game company. The net rate of the two companies is about twice times that of the company, which has a lot of cash flow and even surpassed the current market valuations. So we will hold it for a long time until its reasonable valuation is reflected. It's fun to invest in these companies, and you can grow with the company until their value is truly reflected.

"Financial quotient": when you see a very good company, how do you establish the buying point?

Julian Molin: It is really difficult to establish buying time, we are not a good trader, the buying point may rely more on technical analysis. Of course, the buying point is not particularly important to us because we only invest in companies that we think have 200% or even 300% of growth space. Even if the buying time is not perfect, buy early or buy late, as long as the company's fundamental analysis, the company's prospects for the development of the view are correct, then still can get 200%, 300% of the revenue.

So we are not particularly sensitive to market timing, there is no frequent trading, more time for thinking, talking to people, understanding what they are really doing, and then deciding on our investment, which is the way we work.

"Financial quotient": Has the fund been operating short in the past few years?

Julian Molin: We did it only three times in 2008, targeting a number of big market stocks, including ICBC and Bank of China. We rarely sell short because we are fundamentally optimistic about the Chinese economy and the Chinese concept stocks. And shorting is difficult, because the stock market volatility is very big, shorting cost is also relatively high. So when we are not bullish on the market, we usually rely on lower positions, holding cash to avoid risk. In 2008 we had only 30% of our positions because it was very difficult to analyze the market at that time, and the various situations faced by the market were very complicated. So we decided to hold the cash first and then see what happens next and then decide to go back to the stock market at the right time.

We are more concerned about positions than shorting. Sometimes the positions are full, sometimes the position is only 20%.

It's only 12% of the cash.

"Financial quotient": How do you usually pick a stock?

Julian Molin: Generally speaking, we are a typical value investor. When it comes to picking stocks, its valuations should be relatively inexpensive, and secondly, we invest in companies that will have 200%~300% growth in the next 2-3 years. In addition, we are also very focused on the safety margin of investment. When you are at an undervalued price investment company, the safety factor of investment can be relatively high.

There are also many stocks we do not invest in, because many aspects are not very understanding or understanding.

"Financial quotient": You only invest in companies you can really understand?

Julian Molin: Yes. Our team is very small and has no intention of expanding. So we're not going to look at too many industries and stocks, but invest in a few people and try to understand it better than anyone else. If you look at our portfolio, stocks generally 15~20 only, basically take the principle of centralized shareholding.

"Financial quotient": what is your industry that invests more?

Julian Molin: A lot of it is infrastructure, telecoms, spending, we're not investment banking, insurance, and technology, because it's too complex for us to understand.

"Financial quotient": What are your current positions?

Julian Molin: We're only 12% in cash now. This year is particularly interesting, many U.S. investors and European investors are more pessimistic about China, but I am relatively optimistic, through a stock of research I think this year there are some good investment opportunities.

We currently have 16 stocks in our portfolio. It is difficult to unify the time for holding the stock, mainly by the prevailing market conditions. For example, 2006, 2007, global demand is very strong, monetary policy is very loose, this time our stock may hold for more than 1 years. But in 2009, 2010, the market volatility is very large, uncertain factors, we are trading more frequently. In fact, we are not good at frequent trading, so the two years did not expect good.

"Financial quotient": What is the investment strategy this year?

Julian Molin: It's hard for me to tell you what our specific investment strategy is. We do not care about the overall market situation, more concerned about the opportunities for stocks.

In 2008, although the whole market was falling, there were still a lot of stocks going well. 2008 1 ~ March, typhoon, snowstorm is very serious, a lot of agricultural companies have a big impact, and the price of vegetable products also rose particularly strong. We've invested a lot of agricultural stocks this year, and it turns out that the market for agricultural companies is really good. That means you still have a chance to make money even in a market that has fallen unilaterally in 2008.

Last year's market performance was not particularly good, I think the market should be good this year. At present, see a A-share, Hong Kong stocks are not particularly expensive, may be a good time to buy. We are not going to say how much of a proportion of the assets to be allocated in a consumer or other industry, and that the investment strategy is determined by specific investment opportunities, such as a sudden drop of 20% in a stock that I keep track of, so I could buy it. A lot of things can happen.

"Financial quotient": What do you think about the A-share market this year?

Julian Molin: I'm not good at predicting market trends, but I think a shares should be good this year. At least a a-share is not expensive, so it is not bad for you to put money in a A shares, perhaps a good opportunity to intervene.

Julian Molin Introduction

2000 started the securities market related work, successively in Barclays Asset Management as assistant fund manager (responsible for European telecommunications, media and technology industry), the Swiss United Bank Global Asset Management department as a telecommunications industry analyst, the United Kingdom axis Company as S.K.I. Founder of fund company and executive director of Long and short term stock. After coming to China, he also served as an independent consultant and deputy general manager of Vision Energy International Limited.