Lion, the king of tigers

I spent a lot of time with Lion Capital on my Asia trip and came way tremendously impressed by their investment process and insight into Asian markets and stocks.

Based in Singapore, Lion Capital manages in excess of US$24 billion and has had a six-year winning streak, notching up 80 awards for its various investment funds. Lion Capital is owned by Singapore’s OCBC Bank, which has assets of S$170 billion and a network of 460 branches in 16 countries.

I really like the process Lion Capital uses to select countries and stocks and spent much time analysing their recommendations and stock picks for the Alpha POWER Shares – 'Asian Lions'.

The current focus of Alpha Powers Shares Asia is Hong Kong, Singapore, Malaysia, Taiwan and Korea. Japan, for example, was excluded because of its low economic growth. The portfolio has 20 stocks and includes prominent Asian companies such as Hang Seng Bank, Hong Kong Electric, Singapore Telecoms and China Steel. The average price earnings ratio of the stocks is 12 and dividend yield is 4.7%.

Our goal was finding high-quality Asian companies that are reasonably priced, have good yield and capital-growth prospects and reasonable volatility.

The portfolio has been meticulously chosen and rigorously back tested by Lion Capital. The portfolio would hypothetically be outperforming the market now based on the back testing as the chart shows.

 

For more information about Lion Capital, go to www.lioncapital.com.sg