New Harbour Asia Fund is a long biased equity fund investing in listed companies operating in Asia. It seeks to achieve substantially above market returns, over a three year rolling period, with below market draw-downs. Fundamentally driven stock selection and disciplined risk management underpin our investment process.
New Harbour invests in businesses that have an attestable competitive edge and are worth materially more than what their current stock prices imply. These businesses also typically enjoy positive industry dynamics. It also invests in out-of-favour companies with high quality balance sheets offering deep value. The Fund prefers company management that has shown due regard for minority shareholders and seeks to treat them fairly.
Conversely, companies with structural earnings deterioration are short candidates. The short portfolio is expected to generate alpha and is not considered a hedge to the long portfolio.
The Fund is moderately concentrated with 90% of the Fund in 30 positions – both long and short. Over a full cycle, the gross exposure of the Fund is expected to vary between 50% and 120% of NAV.