Barron’s has identified five veteran fund managers who are sticklers for strong balance sheets, and whose funds have lost less than peers during the market’s recent rout.
Some even favor net-cash companies, or companies with more cash than debt on their balance sheets—an enviable position to be in as the economy heads south, Barron's said.
Here’s how the five are approaching the downturn—and a look at the stocks they find appealing now.
Fund / Ticker / Comment
- Rondure New World / RNWOX Global manager focuses on balance-sheet strength
- Polen Growth / POLRX Concentrated fund invests in self-funding, cash-rich companies
- Royce Special Equity / RYSEX Veteran value manager specializes in small-caps
- IVA International / IVIOX Veteran value managers hold cash, gold, net-cash companies
- Jensen Quality Growth / JENSX Conservative growth fund has done well in down markets
Meanwhile, as the coronavirus began to take its economic toll on the U.S. and Europe last month, hedge funds in China were busy boosting their war chests, Bloomberg reported.
The nation’s hedge funds registered 2,733 new products in March, more than double February, according to data compiled by Shenzhen PaiPaiWang Investment & Management Co. Two of the biggest firms, Shanghai Minghong Investment Management Co. and Perseverance Asset Management, launched 19 and seven new products respectively, official records show.
Although most don’t disclose fundraising details, Shanghai-based Wealspring Asset raised more than 8 billion yuan ($1.1 billion) last week for a single stock-and-bond fund run by star manager Yang Dong, people familiar with the matter said, asking not to be identified because the details are private. That dwarfs the industry average of 59 million yuan per fund in assets.
As China’s economy emerges from the depths of coronavirus despair, money managers are turning bullish again. Lockdowns are being lifted, people are getting back to work and authorities are stepping up efforts to get business moving. One-third of hedge funds plan to boost their domestic equity holdings in April after trimming exposure in March, according to PaiPaiWang.