“We have little control over macro risk. But that doesn't mean we sit back and just watch the situation unfold. Deal or no deal, the team and I think about the companies we invest or we will invest in everyday. Our portfolios comprise quality companies with strong management that should be able to withstand volatility. However, given little clarity in the horizon, we are de-risking the portfolio. This means reducing our allocation to companies that are more richly valued,” says Bin
Bin does not rule out more volatility in the next half year or so. “The recent sanction of the US on Huawei Technologies (Huawei) is not helping matters. Huawei is one of the key leaders in the latest 5G mobile technology. ”
Both the US and China are head-to-head in competing for technology leadership and Bin believes that a stalemate is not in either party’s interest. It is not unlikely for some form of middle ground to be reached but the negotiation path will not be straight forward or immediate.