HK fund manager plans to open office in KL


Group chairman and co-chief investment officer Datuk Seri Cheah Cheng Hye told StarBiz that the Malaysian stock market had a market capitalisation in excess of US$400bil.

GEORGE TOWN: Hong Kong-based Value Partners Group, which is one of Asia’s largest fund and asset management firms, plans to set up an office in Kuala Lumpur over the next 18 to 24 months.

Group chairman and co-chief investment officer Datuk Seri Cheah Cheng Hye told StarBiz that the Malaysian stock market had a market capitalisation in excess of US$400bil.

“This is why it is worth considering. Currently, we have a few hundred million ringgit in Malaysian assets, mostly in palm oil.

“Two years ago, we had already set up an office in Singapore,” he said after delivering a talk at The CEO Speaks forum organised by investPenang.

Cheah noted that the ringgit had depreciated by about 23% against the US dollar over the past three years.

“This is due more to the political scenario in the country rather than the non-performance of companies,” he said.

He said that previously, the company was unable to focus on the Asean region because it had limited manpower.

Cheah believed that another financial crisis was forthcoming.

“This is because politicians are not coming up with the appropriate solutions to deal with the structure problems.

“They are only patching up the problems temporarily with the assistance of band-aids, which is fuelling another crisis.

“The strategy is to have a diversified portfolio,” he said.

Cheah’s recommendation is to have 10% to 15% of the capital placed in gold, 15% to 25% in cash, and the remainder in high risk investments that can generate high returns.

“You need to have high risk investments that can generate high returns so that you can afford to lose when the crisis comes,” he added.

On the Hong Kong stock market, Cheah said it had already stabilised. “The price-to-earnings ratio for the stocks are 12 to 15 times. The stock market situation in Hong Kong for the next 24 months is okay,” he said.

On the errors that he had made, Cheah said a lot of times the error was due to the misjudgement of human characters.

Founded in February 1993, Value Partners now manages about US$14bil of assets.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , value , cheah , cheng , hye , market , capitalisation , stocks , shares , HK , fund , manager ,

   

Next In Business News

From Harvard to Nasdaq listing: Grab CEO's ride to world's biggest SPAC deal
Widad to acquire Royal Navy training centre maintenance firm in Johor for RM35mil
Niche Capital to venture into gold mining business�in Kelantan
Banks' asset quality can recover to pre-pandemic level by 2023 -- S&P
TM awarded best companies to work for in Asia 2020, HR Award
Teladan Setia expands landbank in Melaka
SC imposes penalty on former EY partner for failure to comply with auditing standard
FBM KLCI ends the day almost flat
LVMH shares hit record high after strong sales figures
Tesco reports 2 bln pounds profit after 'exceptionally strong' sales

Stories You'll Enjoy


Vouchers