- Avoidance of Chinese internet stocks vindicated and performance turned around
- Discount remains wide and ESG credentials look underappreciated for all the wrong reasons
IC TIP:
Buy
at
357p
Tip style
Value
Risk rating
Medium
Timescale
Long Term
Bull points
- Avoidance of Chinese internet stocks vindicated
- Performance turnaround
- Wide discount
- Long-term, “stewardship” focus
Bear points
- India uncertainties
- ESG credentials going unrecognised
In April 2018 Stewart Investors, the manager of Pacific Assets Trust (PAC), published a thought piece explaining why it would continue to avoid Chinese internet stocks despite the “pained looks of sympathy from friendly competitors and clients”. The pain was destined to get much worse.