Button Growth Fund
The investment objective is to achieve long-term absolute returns by primarily investing in equities and index futures in the US, Hong Kong and mainland China markets.
In order to achieve the investment objective, the portfolio manager will take long or short positions which may be leveraged and that are within the boundaries of the stated investment restrictions. The portfolio manager intends to make investments when there are positive expected value (“EV”) opportunities. A positive EV opportunity means that the probability of winning times the return is greater than the possibility of losing times the loss.
The following are some examples of positive EV opportunities where the portfolio managermay make investments. Firstly, the portfolio managermay invest in securities of good quality companies with high competitive moats, especially when the target companies are experiencing corrections because of temporary difficulties or negative market sentiments. Secondly, the portfolio managermay invest in undervalued companies with solid fundamentals which are out of favour and unappreciated by the market. Thirdly, the portfolio managermay invest in cyclical companies when heenvisions a bottom to the cycle. Usually, trading opportunities occur when share price movements deviate from the fundamental and/or macro status.
The portfolio managermay also short when positive EV opportunities emerge. Heintends to short weak companies that are overhyped, overvalued and that may have lost the upward momentum.
Mr. Lu was previously a portfolio manager with HJY Capital Advisors (HK) Limited where he managed a long-short equity fund for around three years. Mr. Lu began his career at Daiwa Capital Hong Kong as an equity analyst.
Mr. Lu received his Master of Business Administration in Finance from UCLA Anderson School of Management and holds both Bachelor of Engineering and Master of Engineering from Shanghai Jiao Tong University. Mr. Lu worked as a senior software engineer before transitioning to finance.