Lombard Odier Investment Managers (LOIM) has unveiled a new China strategy that will invest in companies linked to growing Chinese domestic demand, as part of an expansion of its global high conviction equity offering.
The China High Conviction strategy will invest in a diversified portfolio of 30 to 50 stocks across three "buckets" - quality value, high growth and corporate events - with the aim to deliver attractive economic returns over the long term.
Didier Rabattu, head of equities at LOIM, said: "The opportunity in China is unparalleled in our view. Traditional equity indices have consistently under-represented Chinese companies and we believe it is still an untapped and high-potential market.
"China's prolonged growth and extensive diversification into domestically-driven sectors will continue to transform the investment universe and this strategy is perfectly placed to capture these opportunities."
The new strategy will be managed by LOIM's Asia investment team, which includes portfolio managers Zhikai Chen, Roxy Wong, Odile Lange-Broussy and Jinwen Ouyang, who have established a track record managing the LOIM Asia High Conviction strategy.
The team will identify companies based on a disciplined approach that involves fundamental research and forward-looking analysis of business models and valuation.
Chen, portfolio manager and head of Asia ex-Japan equities at LOIM, said that millennials and the middle class are transforming China's society and its consumption patterns.
"As Chinese equity markets continue to perform, we believe this strategy is well positioned to help investors capture the associated benefits," Chen added.