Great opportunities in Asia
Most markets in Asia are inefficient. A paradise for fundamentally driven value investors.
HIGHLY INEFFICIENT MARKETS MEAN HIGHLY SKEWED PAY OFF STRUCTURES


WHY ARE ASIAN MARKETS SO INEFFICIENT?

Trending behavior
Overemphasizing macro economic trends and top-down themes, the investment community tends to extrapolate forecasts causing dislocation.

Negative investor perception
Investors perceive Asia as having poor disclosure, weak corporate governance and a hostile stance towards equity investors.

Looking in the wrong direction
Fund managers and analysts alike overemphasize earnings growth and disregard balance sheet analysis where true value can be found.

Short-Termism
Long term investing is an unpopular concept, many market participants are short term momentum followers who ignore valuation.
But Asian equities are highly volatile
Volatility is not risk, permanent loss of capital is.
That is why we control the downside
We select for the upside and manage the downside.
We select for upside as fundamental value stock pickers. We control the downside by continuous risk control at both single stock and portfolio level. This combination leads to stable, uncorrelated returns with low volatility.
Our value approach
Systematic idea generation. Detailed fundamental analysis. Disciplined risk management.
Building our philosophy.
Pelargos Capital was established in 2008 in the midst of the global financial crisis. Two major bear markets in less than a decade had a profound impact on our culture and reinforced our believe that investing is about understanding risk and taking risk when the odds favor us to do so.
Kaizen
Financial market participants operate in a dynamic, interactive and adaptive environment. We strive to continuously improve ourselves and the way we operate. Over the past few years we strengthened our analytical investment framework and introduced systematic tools where applicable. The basic premise remains the notion of mis-pricing.