Through multiple cycles in the Chinese equity markets since 2007, Rosefinch established a rigorous and thoughtful investment philosophy that laid the foundations for its superior risk-adjusted investment returns.
Rosefinch is a careful guardian of investor's capital. We seek to maximize the certainty of any investment as much as possible. By doing rigorous research on the industry, the company, and the management, we look for the best value with a healthy margin of safety. During time of volatile markets, we'd rather miss ten opportunities than to rush into one.
Rosefinch aims to be experts in the industry-chains of its target stocks. We want our research analysts to know the company as well as its management, with additional valuable insights from our team of over 40 analysts across the industry. By having deep understanding of the industry, and meaningful dialogues with the management team, we can have strong convictions in our carefully selected stocks. Our portfolio's top 20 stocks typically account for more than 80% of our total exposure.
A creative mindset is required to extract long-terms values in China's evolving and dynamic economy. To encourage creativity, Rosefinch holds weekly team meeting to brainstorm on ideas and to cross-examine proposed investments. Furthermore, experienced analysts are encouraged to stay in research so the team can leverage their insights. Lastly, Rosefinch works closely with our invested company to create eco-systems of ideas and partnerships for better engagement with long-term themes like “3060” – China's ambitious goal of Carbon-Peak by 2030 and Carbon-Neutral by 2060.
Rosefinch promotes critical analysis and independent thinking. By having all analysts contributing to investment discussions, we deepen our understanding, increase our confidence, and protects investor’s capital. Our rigorous team approach to analysis provides 360-degree view of the target company across its upstream suppliers, competitors, and downstream customers.