The Dreyfus Premier Greater China Fund, which has risen 149% in value over the past 12 months, has beaten all other funds on the market, MSNBC reports.
Hugh Simon, the fund’s lead manager, said he takes a bottoms-up approach to invest in lesser-known, obscure companies, describing his fund as “boutique.”
“We don’t have to justify why we’re” not invested in a major stock, Simon said. “I let the fund managers implement their ideas as long as they have high conviction.”
Currently, the fund has high stakes in travel companies, due to the upcoming Beijing Olympics, and in infrastructure firms, due to the tremendous building boom in the nation.
As far as talk of an upcoming bubble in China is concerned, Simon seemed to acknowledge that one is inevitable, but said that he is hedging against that by looking for stocks with reasonable valuations.