Skip to main content

Anthony Bolton defies China bears with new fund

Bloomberg Markets profiles Fidelity fund manager, Anthony Bolton, the British investing star who recently backed away from retirement and has now "staked his reputation on China".

More in Bloomberg's article, "Fidelity's Bolton defies China bears with 27% return":

"...In Britain, Bolton’s reputation as a stock-picking genius was analogous to that of Peter Lynch, the manager of Boston- based Fidelity Investments’ Fidelity Magellan Fund from 1977 to 1990. Fidelity Investment Managers, formerly known as Fidelity International, is an affiliate of Fidelity Investments.

Now, at age 60, Bolton is in China partly to explain to clients why he has made a comeback to bet he can pick winners for the 625 million-pound Fidelity China Special Situations Fund that made its debut in April. Bolton says he’ll be able to find winning stocks that other fund managers have ignored.

So far, that self-confidence has been justified. Anyone who bought into the closed-end fund when it was introduced in April and sold on Nov. 9 would have enjoyed a 27 percent return in less than seven months. Two of his picks, The United Laboratories International Holdings Ltd. and Brilliance China Automotive Holdings Ltd, have almost quadrupled in value since the beginning of the year.

Now shares in Bolton’s fund have become so sought-after that they are trading at almost a 10 percent premium to their net asset value, prompting Fidelity to issue a statement on Nov. 9 saying it plans to sell new shares next year, giving priority to existing shareholders..."

Oftentimes, a glowing article like this can serve as the kiss of death for a fund manager (at least temporarily, as they usually follow an unusual winning streak).

Still, it's early days for Bolton's new fund and we have to imagine that an investor with his experience is probably experiencing more than just dumb luck in this latest success. Especially given that this year's outperformance comes as the benchmark Shanghai Composite Index is down over 4% year-to-date.

Mr. Bolton faced skepticism over his China fund early on, as Controlled Greed points out in this post from January. It seems that even with a lengthy & successful investing career behind him, some people thought he would be "risking his reputation" by starting anew in China.

We shall see how it turns out, but for now, I'll be reading on for more of Anthony Bolton's insights on investing in China and meeting new challenges and opportunities.

Related articles and posts:

1. Lessons on investing from Anthony Bolton - Controlled Greed.

2. Interview with Anthony Bolton - The Telegraph.

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.

Moneyball: How the Red Sox Win Championships

Welcome, readers. To get the first look at brand new posts (like the following piece) and to receive our exclusive email list updates, please subscribe to the Finance Trends Newsletter.

The Boston Red Sox won their fourth World Series titleof the 21st century this week.

Having won their first Series in 86 years back in 2004, the last decade-plus has marked a very strong return to form for one of baseball's oldest big league clubs. So how did they do it?

Quick background: in late 2002, team owner and hedge fund manager,John W. Henry(with his partners)bought the Boston Red Sox and its historic Fenway Park for a reported sum of $695 million.

Henry and Co. quickly set out to find their ideal General Manager (GM) to help turn around their newly acquired, ailing ship.

This brings us to one of my favorite scenes from the 2011 film, Moneyball, in which John W. Henry (played by Arliss Howard) attempts to woo Oakland A's GM Billy Beane (Brad Pitt) over to Boston with an excellent job off…