Fidelity China Special S... Share Discussion Threads

[a1samu] 17/6/2011 08:45

This is what ii are writing about FCSS today;

Chart of the day: Going against the trend in FCSS?

Fears of a Chinese hard landing has sent the Fidelity China SS fund plumbing new depths. Yesterday, the instrument dropped below its June 2010 lows for the first time.

The question for now is: Should one sell? Well, if one is confident that the Chinese government can manage the economy well, then no. Moreover, FCSS's decline is oversold and susceptible to a rebound. Meanwhile, it is also worth noting the FCSS has a seasoned fund manager - the legendary Anothy Bolton - in charge.

Therefore, a long-term believer in the Chinese economy should use the recent drop to buy more.

[roman2325] 17/6/2011 08:28

This is the article:

Bolton's flagship China fund suffers

By Robert Cookson in Hong Kong

Published: June 16 2011 22:16 | Last updated: June 16 2011 22:16
Anthony Bolton: shares in the feted fund manager's China Special Situations fund have dropped 20 per cent  

Anthony Bolton, the feted fund manager at Fidelity International, has suffered a stumble with the poor performance of his new flagship China fund this year.

Mr Bolton's China Special Situations fund raised £460m ($743m) when it launched with much fanfare on the London Stock Exchange last April. But in the year to date, shares in the fund have dropped 20 per cent, a much sharper fall than the broader Shanghai and Hong Kong markets.

Over the same time, the net asset value of the fund dropped 14.4 per cent.

For the first time since May 2010, the share price of the fund dipped below its net asset value – a phenomenon that suggests a dip in investor confidence in Mr Bolton's ability to produce the consistent double-digit returns that have been the hallmark of his 30-year investing career.

Chinese stocks listed on stock exchanges across the world, including Hong Kong, London and New York, have declined this year due to worries about corporate governance problems and concern that the Chinese economy is slowing while inflation remains stubbornly high.

In the year to date, the Shanghai Composite index has fallen 5.12 per cent while the Hang Seng index in Hong Kong has dropped 4.7 per cent.

Shares in Mr Bolton's fund closed at 94p on Thursday, down 6 per cent from the price of 100p at which investors bought shares in its initial public offering.

Previously, the fund traded at a premium over its net assets that went as high as 13 per cent last November, a price investors were willing to pay for Mr Bolton's record of market-beating returns.

Mr Bolton, who does not speak Mandarin but works with a team of experienced locals, was unavailable for comment on Thursday.

His fund is due to release its annual results next week, with details of its holdings and Mr Bolton's strategy for the future.

In the fund's latest statement for the month of April, Mr Bolton said: "China is not without risks but I continue to believe that the case for investing is compelling."

In an interview last week with UK investment website Motley Fool, Mr Bolton said he was "very disappointed" with the fund's recent performance.

Almost half of his portfolio is invested in Hong Kong-listed shares, with the remainder in Chinese companies listed in Shanghai, New York and elsewhere.

Before moving to Hong Kong last year, Mr Bolton wowed investors during his 28 years at Fidelity's flagship London-based Special Situations fund by delivering an annualised return of 19.5 per cent.

Fidelity International declined to comment.

[spob] 17/6/2011 08:01

I read the above article on my Blackberry

but FT website will not allow me to read it

Daft



Anyhow says Boltons Fidelity fund down 20% on the year

No shortage of suckers in the investing world

[spob] 17/6/2011 07:52

pump and dump

glad i stayed clear of the hype

[jonwig] 17/6/2011 06:32

Article in FT today (need registration):

[sicall] 16/6/2011 21:52

One thing i did learn from 2008/9 was that markets rise and fall together as the same investors are in all of them.

I also remember that China led the global stck markets up in early 2009.

So what they are telling us now is GET THE HELL OUT !!

I`m in the lifeboat with my bag of cash.

[whizzy1] 16/6/2011 17:18

Back to basics, never mind chart analysis, level 2 & what may or may not be happening to the dollar/euro etc, buy low sell high & that's it.

[value viper] 16/6/2011 17:06

folks were happy to pay a premium here a week or so back, now at the discount as u say; if one is still believing in the China story, i quite fancy this myself.

[jonwig] 16/6/2011 17:03

I think the way to play this might be via the discount - now around 4% ... wasn't it a premium in the early days?

The market will surely overshoot on the discount percent: maybe 10% worth a close look, 15% buy a few, 20% you're feeling lucky.

[whizzy1] 16/6/2011 16:42

In @ 92.77, any drop tomorrow & I shall fill my boots.

[tyranosaurus] 16/6/2011 13:32

Re-entry ?
I just got out.

There seems to be no reason to ever get back in.

[masurenguy] 16/6/2011 10:17

Still watching and looking for a re-entry point. Stiil not tempted yet !

[atflores] 16/6/2011 10:13

So, who benefitted most from the share dilution?

[masurenguy] 15/6/2011 20:38

How Anthony Bolton Destroyed The Market

Fidelity China Special Situations (LSE: FCSS), the biggest investment trust launch of 2010, and in fact the biggest such launch for 16 years.

[roman2325] 15/6/2011 12:37

There lies your reason why every institution ducked it

[tyranosaurus] 14/6/2011 17:45

Has Anthony Bolton lost his touch ??

One year in China and nothing to show for it.

Me thinks he should get a kick up the backside to either get this performing or retire.

[whizzy1] 13/6/2011 18:03

Same here, I'd be happy to catch the knife @mid 80's or low 90's

[masurenguy] 13/6/2011 15:55

Took profits and sold half my original holding in September and then the balance early in January.
Now looking for a suitable re-entry point again.

[little beaker] 10/6/2011 14:40

China "B" shares took a proper drubbing overnight, but I think the focus will be more on HKG and Shanghai A - Interesting performance vs FXC (FTSE XINHUA tracker) which has been fairly choppy over the last few months.

These loo to be a proper retail punter's share with high charges, high hype, and no discount to NAV. There must be better out there, check trustnet.

[whizzy1] 09/6/2011 15:56

I wonder how the big investors are taking this? Hiccup or out & into something more promising' I'm up 18% from SDY with the cash used when I sold out FCSS, interesting week ahead, no support at the moment it seems.

[whizzy1] 03/6/2011 08:31

Waiting to get back in on a previous low, soft numbers from the U.S later today should see investors reducing risk across the board. The weak may sell on fear, and if so, I shall buy hoping for an entry point in the low 90's and top up if it goes lower, once over a quid again, I shall stop buying.

[a1samu] 02/6/2011 19:32

Actually ii are now calling these a bear to 90p, after it touched 102p and closed today on 102.5p, with a stop loss of 116p.

CANNOT SEE THIS ON 116P ANYTIME SOON NOW. OF COURSE THIS IS AN OLD FASHIONED LONG ONLY SHARE AND THE ONLY THING TO DO IS, TO SELL UNTIL IT HAS BOTTOMED OUT.

[whizzy1] 01/6/2011 18:30

Mid 90's shortly?

[knowing] 23/5/2011 22:47

roman it is not trading at a discount as the last NAV was from the 20th. Chinese market had a big down day today so NAV figures have some catching up to do.