A Pure Bottom-Up Strategy for Investing in Asia: A Wall Street Transcript Interview with Kok Hoi Wong, Founder and Chief Investment Officer of APS Asset Management Pte. Ltd.

Wall Street Transcript

67 WALL STREET, New York - June 28, 2013 - The Wall Street Transcript has just published its Investing in Asia Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Investing in Asia - Longer-Term Investing - Asia Pacific Investment Theses - Investing in China - Equity Investing Strategies - China's Domestic Markets - Undervalued Asian Companies

Companies include: IGB Corporation Berhad (IGB:MK); Shenzhen International Holdings Limited (0152.HK), Mitra Adiperkasa Tbk. (MAPI.JK) and many more.

In the following excerpt from the Investing in Asia Report, an expert portfolio manager discusses his portfolio-construction methodology and investment philosophy:

TWST: In which Asian countries do you currently see the best investment opportunities? What are the factors you believe are creating those opportunities?

Mr. Wong: Our country allocation and sector allocation are byproducts of our stock selection. Nonetheless, I would say based on our company research, we find good value in China and Korea. As you know, there's been a lot of negative news about these countries. Both markets sell at depressed valuations of about nine times this year's earnings.

Korea has suffered this year because of the weak yen and the tension in the Korean peninsula. But Korea has many strong global companies. The Chinese stock market is perhaps most interesting this decade because I think it has most of the ingredients of a super bull market, including the pervasive pessimism inside and outside the country.

TWST: You already said that you use a bottom-up process, but that being said, which sectors are you most interested in at the moment and why?

Mr. Wong: Based on our company research and the valuation work we do, we are currently bearish on two sectors. One would be the consumer staple sector, especially the Chinese food and beverage sector. They are way overvalued. For a long time, investors have liked this sector for their defensive nature. We concur on this point, but the stocks are priced for perfection. What worries us most is the slowdown we are seeing in both the top line and bottom line of many F&B companies. I have not even started talking about the intensifying competition that we are seeing. I expect F&B stocks to underperform for an extended period of time.

The second sector that we are bearish is the REITs, or the real estate investment trusts, in the region. Because of low interest rates, most investors, including retail investors, have felt for a long time that REITS are low-risk and attractive investments yielding...

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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