Market commentary Lessons from managing Chinese equities

Bin Shi, Head of China equities, said he has "made his fair share of mistakes … but this has made for a steep learning curve. In the long run, it has helped him outperform."

10 Oct 2017

Making mistakes is part of life, but making the same mistake twice cannot be forgiven

'Success eventually erases all mistakes.' The Chinese proverb perfectly captures the perfectionism of high-flying fund manager Bin Shi, who is always focused on correcting and learning from any missteps in his strategy.

Over the past five years, Shi has led the way in the Chinese equity sector, outperforming all of his peers with consistent returns from his UBS China Opportunity fund.

The manager has been at the Swiss banking giant for more than 11 years and runs three Chinese equity funds from his base in Hong Kong.

He has managed the $1,788.41 million China Opportunity fund since July 2010 with a fundamental approach and a market-cap-neutral strategy.

In this respect, Shi explains that he doesn't pay too much attention to the benchmark, as the fund has an overweight of 30% in small and mid caps.

In his allocation, the Chinese-born manager draws upon both his long career in Chinese equity investing and the experience he gained in US equities between 1999 and 2002.

"It's good to have experience in developed markets like the US market, because you know which direction emerging markets like China will go in the long run."


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