hwang's funds are in a defensive position setting now.... next few months may not perform well but it may helps to prevent more loses...
Emerging Markets Tumble, Dragging Asia Down.....Created on 28 January 2014..... Author: David Ng
Market volatility has reared its ugly side again even though it is only the first month of 2014. Faced with renewed uncertainties, investors’ confidence waned and global financial markets took a beating.......
Investment Strategy
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In view of the near term uncertainty, market exposure has been reduced to cushion the impact of further weakness in the market. While there are possibilities that this may merely be a short term pull-back, we deem it necessary to maintain a more cautious approach, preferring instead to preserve the funds’ capital.
Portfolios will be raising their cash levels between 20%-30% at the expense of commodity and currency dependent stocks as well as locking-in gains in the interim. We will be keeping a close watch on the latest developments on the global front, waiting for the dust to settle before moving back into the market.
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We are managing our portfolios actively to defend our positions. For the Malaysian portfolios, we are adopting a conservative strategy as it is unclear where markets are heading. Hence, we are selling more of our liquid positions and reducing smaller / mid-cap positions, raising cash in the range of 15%-20%.
above are parts partially extracted from
http://www.hwangim.com/fund-managers-views...gging-asia-downI can understand about the preservation part, but I don't understand why HwangIM has been stubbornly staying away from high-yielding Australian equities and Korean equities with growth potential.