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Welcome Message for “Upward Toiling of Our Hidden Champions – Issue 1”

Dear Friends and Partners,

Welcome to the first issue of the “Upward Toiling” newsletter where we highlight inspirational and unusual stories and the latest corporate developments of Hidden Champions creating and compounding value in Asia – before they are widely known and popular.

Consider the upward toil of Microchip Technology Inc, a fabless IC and microcontroller designer which compounded 12,300% since listing in 1993 to a market value of over US$19 billion. What did Microchip’s founder Steve Sanghi do differently in toiling upward to rise against the odds? Is there a similar emerging story to Microchip and NXP that is happening in Asia? Read below to find out.

We are very grateful for your trust and support in our event held on June 8 in which we won several new clients to grow together with the hardworking and farsighted Asian Hidden Champions. We like to highlight the story of our first client who had invested $1 million of her hard-earned savings which represent much more than money – they are a tangible product of her life’s work and a repository of aspirations for the future. She had invested small sums of money on her own in different stocks but stopped short of investing large sums of money in any positions due to lack of conviction. She is also a Moat Report Asia subscriber for nearly three years, reading about Akio Nitori of Nitori Holdings (“Japan’s IKEA”), as well as other hardworking and farsighted Hidden Champions – and she went to Japan to see, touch and feel the Nitori retail experience. Through the process, she appreciates the importance of intensity and dedication in research and monitoring to execute high-conviction investing strategy.

At the Hidden Champions Fund, we aim to protect and grow capital by positioning for and capitalizing on the upcoming downturn in the global/economic business cycle. We believe the time is now for investors to consider allocating to, or adding to strategies that can protect and preserve -strategies like those of Hidden Champions Fund.We expect to outperform as the current market hype over the “flight to junk” carry trade that’s groping for yield subsides and the overall market retreats – our Fund tends to do better when the overall market is tepid and lacklustre. For instance, in 2016, when MSCI and STI were flattish to down at +2.5% and -0.1% respectively, the Hidden Champions Fund is up 14.3%.

If you believe you are successful in your work and life (congrats!), and you would like to push the knowledge lever to scale up to achieve something far more valuable than wealth – sustainable growth, serenity, and resilience – please join us and other like-minded professionals, business owners and entrepreneurs who have already RSVP their attendance on 28 June (Wednesday) 7.30pm at Goldbell Towers (47 Scotts Road) Level 3 for our Initial Launch Offering of the Hidden Champions Fund. We look forward to seeing you.

Warm regards,
KB

KEE Koon Boon | Chief Investment Officer & CEO
Hidden Champions Fund
8 Capital Pte Ltd

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Upward Toiling of Our Hidden Champions – Issue 1

“The heights by great men reached and kept were not attained by sudden flight, but they, while their companions slept, were toiling upward in the night.”
– Henry Wadsworth Longfellow in The Ladder of St. Augustine

Mountains are often seen as great obstacles that are difficult to overcome, but offer great heights to those that meet the challenge. We have not wings, we cannot soar, but we have feet to scale and climb. Intelligent entrepreneurs know that piles of challenges give us something to build on and out of the ashes of our mistakes, we learn wisdom. And that struggle, that toiling upward and triumph will allow us to rise.

Welcome to the first issue of the “Upward Toiling” newsletter where we highlight inspirational and unusual stories and the latest corporate developments of Hidden Champions creating and compounding value in Asia – before they are widely known and popular.

Consider the upward toil of Microchip Technology Inc, a fabless IC and microcontroller designer which compounded 12,300% since listing in 1993 to a market value of over US$19 billion. What did Microchip’s founder Steve Sanghi do differently in toiling upward to rise against the odds? From the brink of financial ruin in 1989-1993, Steve focused his attention on the microcontroller market which accounted for only 10% of its sales. Microcontrollers are used for all sorts of electronic control applications, ranging from consumer applications to industrial applications, automotive, telecommunications and office automation type of applications. Even though everybody talks about digital all the time, sound/voice, music, video, temperature, etc., are all analog functions, and there is a large and increasing amount of analog required to convert the signals from analog to digital and then process them within a microcontroller — and then, at the end, you still need to convert it back to analog to light a bulb, to make a sound, to turn a power switch on, to fly a drone — in other words, to control something. The world forgets that the real world is analog. The real world does not operate merely in zeros and ones. Therefore, there is a continuous need for analog microcontrollers that Microchip continues to benefit from. Steve added design programmability to their products and development tools to provide the unmatchable offers and technical support to customers they need to succeed, something which the prevailing industry players in the marketplace did not have.

By focusing on microcontrollers that help power up Amazon’s voice-controlled Echo and other Internet-of-Things (IoT) devices, another fabless IC designer NXP Semiconductors had compounded 680% since 2010 to a market value of over US$38 billion.

The challenge in value investing is that stocks are categorized into economic moats after they are obvious and when the share price has run up substantially. We hope by using the Hidden Champions mental model and framework to examine the underlying source of the wide moat, how they are created and sustained, and not the type/category of the wide moat when they are obvious, the value investor will be imbued with an analytical advantage over others.

Is there a similar emerging story to Microchip and NXP that is happening in Asia?

In our latest year end letter, we highlighted Taiwan’s innovative fabless IC designer Nyquest Technology (GTSM: 6494) which is behind the winning story of Hasbro and the survival of many other toymakers in supplying value-added consumer ICs, including the voice-synthesizer chip, to give smart toys a voice and a soul. Nyquest has market leadership in the niche market for voice-synthesizer ICs and MCUs (microcontrollers) for smart toys which is experiencing a rising recurring demand. In the latest interview (in traditional Chinese) of Nyquest CEO,  Guo Qiuli commented that not only did the company achieve a record high revenue last year and breaking record highs for three consecutive months in March to May this year, they are expecting a double-digit growth this year on the back of growing orders in higher value-added products from existing and new customers that include Hasbro, Mattel, Fisher-Price, Spin Master (Hatchimals) etc.

Catalysts ahead include new product shipment to a household appliance customer in its NY8 series and its NY9T touch controller series at the end of June 2017; its higher-end 32 bit NX microcontroller solution to major toy makers in 3Q2017; and its NY8L LCD microcontroller series for educational devices and consumer electronics products.

Nyquest generates a higher ROE at 24% than Microchip and NXP, but trades at an attractive EV/EBIT of 9.68x with downside protection from a 5.7% dividend yield backed by healthy operating cashflow and a strong balance sheet with zero debt and net cash position that’s 20% of its market value. Note that its ex-dividend date is July 4 and the cash dividend payment of NT$3 per share is on July 25 – this means that if the stock is purchased before July 4, the investor qualifies to receive the cash payment yield of 5.7% on July 25.

Latest interview of Nyquest CEO: 《專訪》九齊董座:今年營運拚雙位數成長,產品向高階邁進


Is the innovative Wrinkle Shot Medical Serum, launched in January 2017, a bigger blockbuster than P&G’s high-margin billion-dollar brand SK-II? Launched by Pola Orbis Holdings (TSE: 4927), Wrinkle Shot is the first-of-its-kind medicinal cosmetic wrinkle-improving quasi-drug. At ¥15,000 (US$130) for 20 grams, the serum’s sales reached ¥6 billion in the January to March quarter, which is 30% higher than an initial target, giving the company confidence to raise the forecasted yearly sales from ¥10 to 12.5 billion. With the launch of Winkle Shot, new customers at the department stores increased by a staggering 40% while new customers for the overall Pola brand increased by 20%. The idea of diminishing wrinkles not only tickles the minds of women who seek beauty but also attracted men with high aesthetic awareness, who account for 10% of the Wrinkle Shot sales. The virtues of focus and persistence of Hidden Champions is again exemplified in Pola Orbis who took over 15 years from the beginning of research to succeed in commercializing the Wrinkle Shot. Wrinkle Shot also uses a new ingredient that can be applied in other new innovative products after the first two years following Japan’s regulation, providing a pipeline of blockbusters to propel sales growth. Catalysts ahead include: Pola plans to launch new products that incorporate their own beauty extract in their “BA” high-prestige anti-aging cosmetic line in August 2017. From 2Q2017 onwards, Pola Orbis will also consistently launch five new products every month, including limited items, for the brand’s 30th anniversary. Pola Orbis is also experiencing strong sales for its Decencia sensitive skin brand of Enrich Booster Serum new product since its launch in March 2017.

Latest interview of Pola Orbis director Akira Fuji: The driving force of Pola Wrinkle Shot Medical Serum

 


Tourism dollars from local and international travellers in Australia has cracked $100 billion for the first time and across a broad-base growth across tourists from China, India, Europe, Southeast Asia and America in the latest figures released by the government (news, data), demonstrating yet again the structural rise of Australia as the new mecca for global tourism and a long runway for growth for Sealink Travel Group (ASX: SLK), the largest tourism and transport company in Australia.

Latest developments of Sealink include: (1) Sealink spearheads research into the feasibility of an underwater art museum off Townsville which is being hailed as a “game changer” for the region’s marine tourism industry. The first of its kind is in Mexico which has become the Top 20 Wonders of the World and resulted in an increase of annual visitor numbers of almost 400,000. The far-sighted ecosystem strategy undertaken by Sealink’s CEO Jeff Ellison in developing island tourism is a win-win for both the local tourism economy of Townsville and Sealink, who operates the ferries to Magnetic Island & Palm Island; (2) Sealink was appointed the initial integration partner of the OPAL cashless ticketing project on 28 March 2017 and ready for operation in 2018. Used on public bus and train services, this enables commuter to pay for ferry services directly by tapping their Opal cards or credit cards, similar to the Singapore’s EZ-Link, London’s Oyster or Hong Kong’s Octopus. It integrates Sealink’s ferries into NSW government’s public transport payment system; (3) Sealink also continually seeks earning accretive and synergistic acquisitions and is potentially looking to expand its reach to New Zealand.

A key operational strength of SeaLink is its constant investment in IT to protect and grow earnings and the government was also impressed by the in-house IT capabilities of Sealink in its decision. Not to be seen as a mere asset operator, Sealink is a technology champion utilizing dynamic pricing, growing e-commerce sales, and machine learning pricing predictions, using its tech platform to scale up with online and mobile ticketing sales now contributing over 23% of total revenue. The resiliency of Sealink is supported by long government contracts and delivery of critical services to provide essential, stable, and long recurring cash flows – even in bad times. It has monopoly in most of the routes it services, including Kangaroo Island, similar to Jungfraubahn Holding AG’s railway monopoly to Swiss mountains.

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Continued safety scandals in food and pharmaceuticals resulted in the new US FDA guidelines recommending the use of food- and pharma-grade material for packaging for the entire value chain of food and pharmaceuticals. A key beneficiary of this structural trend is Emmbi Industries (NSE: EMMBI), one of India’s largest technical textile and specialty polymer processing company manufacturing who has leveraged upon its intangible know-how in technical textiles to create new categories of growth in advanced composites of pharma and food grade, such as anti-carcinogenic, anti-bacterial, anti-corrosive and tapered-proof FIBC, with an R&D center Emmbi Innovation Lab recognized in Apr 2016 by India’s Department of Scientific and Industrial Research (DSIR) to differentiate from its other peers in the fragmented industry, as well as water conservation products that include technical textile-based pond liners, flexible water tanks, car covers used in water conservation.

Emmbi recently inaugurated the world’s widest width pond lining facility at its Silvassa plant in Gujarat in April 2017. Emmbi will produce 4,380 pond liners per year under “Jalasanchay Brand”, creating an extra water storage capacity of 48 million liters per day for rural India. The states of Maharashtra and Rajasthan where the company is presently active in the business, has a plan to produce 110,000 & 50,000 pond liners per year respectively for the next five years. This is the new market segment for Emmbi with a potential size of Rs2,000 crore (US$310 million). Emmbi is a top 3 players in pond liner business and aspires to get 10% of the market share of pond lining business in the coming years. Emmbi is also working with five banks to make funds available for farmers for its pond-liner business, which the management expects to bring in huge opportunities going forward. Emmbi has also started a 15-day certificate course for building a team of Emmbi certified pond lining operators who are the distributors to penetrate the market. Emmbi’s founder and CEO Makrand Appalwar commented that “We are creating a complete ecosystem around it. We have a toll-free number where we run and advise people that how to make a pond, what should be your size of the pond, what crop you are taking, if this particular crop has to be taken, then what is the return on investment for you, one season or two seasons, how fast you will get the money. So all these organizational and operational things must be understood before we go in with a much larger scale of operation, because when we have this pulse of knowledge in the business, success is closer.”

Another new innovative advanced composite product launched recently in June 2017 is the ‘Aroma Lock’ technology that used an aluminium liner to seal the aroma of products like coffee. Emmbi has created a 1-tonner to 10-tonner larger-size bulk packaging transport. Makrand-ji commented, “I am glad that Emmbi has now been active in touching your lives every morning through a strong cup of coffee.” Thus, the DNA to innovate and adapt to changing market needs gives visibility on long term sales growth and profitability.

Catalysts ahead include: (1) Emmbi’s positive pressure integrated clean room facility for manufacturing of food and pharmaceutical grade FIBC (flexible intermediate bulk containers) packaging material at Silvassa to tap the exports market will go live in the coming weeks of end June to early July 2017; (2) New advanced composites products such as e-commerce tamper evident multi trip packaging, infrastructure road & roofing underlayment, fire retardant scaffolding; (3) Continued growth in its water conservation products with retail distribution of pond liners, flexi tanks; canal liners, check dams, lapeta pipes; (4) New agro-polymers products in export substitution crop protection, mulch films, silage incubators, agro sheds. Emmbi is also one of the key beneficiaries from PM Modi’s export vision and dream of building a global supply chain and exploring the potential for growth of technical textiles in India and the Textile India 2017 mega exhibition, the world’s first B2B event, in June 2017, will be an important event to showcase innovative hidden champions such as Emmbi to the world.

Presentation of Hidden Champions Fund

We are organizing an Investor’s Presentation for our privileged clients, and would like to invite you to join us on the 28th June 2017 (Wednesday), 7:30pm @ Goldbell Towers, 47 Scotts Road, #03-03, Singapore 228233. We look forward to seeing you.

Warm regards,
KEE Koon Boon | Chief Investment Officer & CEO
Hidden Champions Fund
8 Capital Pte Ltd

Just Monozukuri It Like the Hidden Champions: Finding Investment Resilience in a Wild World

Dear Friends and Partners,

We have announced this morning on Australia Stock Exchange our latest Annual Letter FY2017 – Just Monozukuri It Like the Hidden Champions: Finding Investment Resilience in a Wild World: https://8iholdings.com/wp-content/uploads/2017/06/Hidden-Champions-Fund-Year-End-Letter_Mar2017.pdf

In the Letter, you will find inspiring business and investment insights on Hidden Champions, including how billionaire Akio Nitori scaled up a small furniture store 56-fold from ~S$400 million in market value into “Japan’s IKEA” with a market value of over S$24 billion, twice more valuable than either Keppel or SIA; as well as other uplifting entrepreneurial stories about Jeff Ellison of Australia’s Sealink Travel; Yoshiyuki Okamoto of Japan’s Okamoto Industries; the husband-wife team Makrand and Rinku Appalwar of India’s technical textile specialist Emmbi Industries; the “three musketeers” Guo Qiuli 郭秋麗, Chen Jianlong 陳建隆and Lin Mengyi 林孟逸of Taiwan’s innovative fabless IC designer Nyquest Technology 九齊科技; Akio Kitamura of Giken; Satoshi Suzuki of Pola Orbis; Yasuhisa Takaya of E-Guardian Inc; Dinesh Nandwana of Vakrangee, and so on.

We will share unusual insights on how you can adapt these lessons of Hidden Champions for yourself at work and in life. Take Gerald Shreiber, a dropout who went on to build and scale a pretzel snack food empire J&J Snack Foods 47-fold from S$75 million in market value to over S$3.5 billion – what did Shreiber do differently to innovate that even local F&B SME operators can find inspiring lessons? Or how Bill Gates, whose 2.3% of Microsoft contributes probably 15% of his US$90 billion wealth, managed to create a sustainable flow of wealth and knowledge from his high-conviction investments into selected Hidden Champions like Ecolab, a global provider of water treatment, sanitizing solutions and process applications for a variety of industries. Ecolab has scaled quietly and resiliently from under a billion dollar in market value to US$38 billion since a tipping point in its business model, a lesson that if some Asian companies were to adapt, they could have continued to stay sustainable and healthy to transform from “Stage 1” to “Stage 2” in their corporate lifecycle. In Asia, around 80% of the over 24,000 listed companies are below a billion dollar in market value and there are many “Stage 1” companies trading cheaply from a quantitative or statistical perspective, yet many of these business models are impaired and stuck in Stage 1 – these are the value traps to avoid.

If you believe you are successful in your work and life (congrats!), and you would like to push the knowledge lever to scale up to achieve something far more valuable than wealth – sustainable growth, serenity, and resilience – please join us and other like-minded professionals, business owners and entrepreneurs who have already RSVP their attendance on 9 June (Friday) 3pm at Goldbell Towers (47 Scotts Road) Level 5 for our Initial Launch Offering of the Hidden Champions Fund. We look forward to seeing you.

Warm regards,

KB

KEE Koon Boon | Chief Investment Officer & CEO
Hidden Champions Fund
8 Capital Pte Ltd

Invitation to the Initial Launch Offering of the Hidden Champions Fund

Dear Valued Entrepreneurs Investing in Entrepreneurs

We achieved an important business milestone in April 2017 as 8 Capital Pte Ltd, a wholly-owned subsidiary of 8I Holdings (ASX: 8IH), has obtained approval from the Singapore regulator Monetary Authority of Singapore (MAS) to operate as a Registered Fund Management Companies (RFMC).

Having delivered a credible absolute gain of 21% since our inception in September 2015 from the permanent capital provided by 8IH to an AUM (Assets under Management) size of over S$26 million, we are excited in opening the Hidden Champions Fund to qualifying external investors.

Salient highlights of the Hidden Champions Fund:

Why Invest in Hidden Champions: The investment objective is to invest in early staged or tipping-point staged innovative Hidden Champions in Asia, usually overlooked with an underappreciated wide-moat and a long-term growth trajectory path. They are market leaders in hard-to-imitate products and valuable critical niches that are indispensable to the well-being of our everyday life. These Hidden Champions weather crises and recession to deliver outperformance often not linked to general economic conditions, thus offering de-correlated and resilient investment returns. Join us and participate in the journey of these outstanding and hardworking founders and owner-operators invested by our Fund – including Jeff Ellison of Australia’s Sealink Travel, Yoshiyuki Okamoto of Japan’s Okamoto Industries, Akio Nitori of “Japan’s IKEA” Nitori Holdings, the husband-wife team Makrand and Rinku Appalwar of India’s woven sack and technical textile specialist Emmbi Industries, the trio Guo Qiuli, Chen Jianlong and Lin Mengyi of Taiwan’s innovative fabless IC designer Nyquest Technology, and so on – who have and are likely to continue to outperform and deliver compounding returns over the long-term.

• High-Conviction Investment Strategy with Transparency: We adopt a high-conviction investment strategy of investing in 20 to 30 Hidden Champions. The Fund employs zero leverage in its investments;

Top 20 Shareholder in Under-Researched Quality Firms: We are a Top 20 Shareholder for 4 of these Hidden Champions. We aim to be a Top 20 Shareholder of the companies we invest in as a demonstration of our conviction and transparency in the investment process. We look to become a substantial shareholder with a 5% stake as they continue to deliver in their business fundamentals. We can be a Top 20 shareholder in some of these Hidden Champions who are at a tipping point stage for an upward re-rating in valuation because: (1) they are under-researched despite their quality and growth; (2) we are one of the earlier foreign institutional investors and our Hidden Champions are poised to enjoy greater quality institutional sponsorship as they continue to deliver on their fundamentals; (3) founding owner-operator and promoter group have a substantial equity stake to provide stability in the shareholder base, and we have a rigorous systematic investment process to eliminate entrenched controlling owners who treat the business as their personal ATM and abuse minority shareholders;

Resilient Structural Growth in Quality Earnings with Robust Returns on Equity: Our portfolio stock characteristics displayed excellent and improving fundamentals with many of our portfolio companies delivering record profits on the back of innovative products and services. Our portfolio weighted market capitalisation is US$636 million and weighted revenue grew by 18.2% over the past three years, generating increasing returns to scale with a 52.8% growth in operating profit with weighted return on equity (ROE) of 26.1% (Dec 16: 23.9%). This is due to the scalability of the business model forged by an indestructible intangible knowhow accumulated over the years to create new categories of growth for their targeted customers and compound growth with resilience in a difficult business environment;

Value-to-Quality (VQ) ratio of Hidden Champions Fund is 77% Superior than Market Comparable: When we compare the weighted profits of our portfolio companies in the Fund to 370 Asia Pacific companies with a similar operating profit range of US$40-70 million, our weighted portfolio return on assets (ROA) and return on equity (ROE) are around 60% and 45% better than the comparable Asian companies of comparable profit scale, yet the valuations in terms of EV/EBIT is around 18% cheaper. With the VQ ratio of our Hidden Champions Fund presently superior by 77% than the market comparable, we believe the Fund is significantly undervalued relative to its intrinsic value and the downside risks are limited to protect investors.

Guided by this, we will open the Fund to external clients in an initial subscription for a limited window period before soft closure. More details will be shared later. As an added disclosure, both senior management of 8IH and the entire Hidden Champions Fund investment team have invested our own personal capital into the Fund to commit our skin – and more importantly, our soul – in the Fund alongside our clients on the same terms and fees.

Outlook: We expect to outperform as the current market hype over the “flight to junk” carry trade that’s groping for yield subsides and the overall market retreats – our Fund tends to do better when the overall market is tepid and lacklustre.

Presentation of Hidden Champions Fund

We are organizing an Investor’s Presentation for our privileged clients, and would like to invite you to join us on the 9th June 2017 (Friday), 3:00pm @ Goldbell Towers, 47 Scotts Road, #05-01, Singapore 228233. We look forward to seeing you.

Warm regards,
KEE Koon Boon | Chief Investment Officer & CEO
Hidden Champions Fund
8 Capital Pte Ltd


Under MAS regulation for RFMC, the Hidden Champions Fund is currently only available to Accredited Investors*.

*An accredited investor is defined as either an individual whose net personal assets exceed SS2 million or whose income in the preceding 12 months is not less than S$300,000; or a corporation with net assets (based on its most recent audited balance sheet) exceeding SS10 million.

The Fund is also available to qualified offshore investors.


 


Click on the images to download our Fund Factsheet and Fund Presentation, or download via the hyperlink: Factsheet, Fund Presentation.
Below are the links to our latest and previous investment letters:
(1) [NEW!] Annual Letter FY2017 – Just Monozukuri It Like the Hidden Champions: Finding Investment Resilience in a Wild World;
(2) Interim Letter FY2017 – The Insurgent Mission of Hidden Champions: Willingness to be Misunderstood and Travel Light to Journey Far;
(3) Annual Letter FY2016 – Hidden Champions: Our North Star Investment Strategy to Navigate Turbulent & Fragile Markets;
(4) Interim Letter FY2016 – Investing with Conviction to Outperform in Times of Volatility and Uncertainty.


Our Team

From L to R of the Hidden Champions Fund team, with each holding a talking smart toy, possibly given a voice by Taiwan’s fabless IC designer Nyquest Technology (IR Slides, IR Video), the Hidden Champion portfolio company in our Fund commanding market leadership in the growing niche market for consumer ICs, voice-synthesizer ICs and MCUs (microcontrollers) for smart toys and appliances riding the structural rising tide of demand in IoT (Internet-of-Things):

Investment Managers Joshua Zhang Yaolin and Richard Sim Zhipeng, CIO KB Kee, Business Development Analyst Tho Jinliang, and Investment Analyst Joyce Pang.


Our Story

With over a decade-plus in the Asian capital markets, Koon Boon, our Chief Investment Officer, has witnessed many investors, including family and friends, be taken in by the popular mantra: “Ride the Asian Growth Story!” stories and invest their hard-earned money, only to find themselves subject to emotional upheavals when these stocks turn out to be inherently sick and prey to economic vicissitudes. They may seem to grow faster initially, but the sustainability of their returns is far too uncertain to be the subject of a wise investment. Worse still, some turned out to be involved in accounting frauds, where financial numbers were “propped up” artificially to lure in more funds from investors, and the previous assessed asset value had already been “tunnelled out” or expropriated. This issue is compounded as western-based fraud detection tools and techniques have not been adapted to the Asian context to avoid these traps. It is disheartening to witness many fraud perpetrators go away scot-free and live a life of super luxury, on these unsuspecting minority investors’ hard-earned money.

Hidden Champions Fund was set up with a simple philosophy: Invest in hardworking Asian entrepreneurs and capital allocators who are serious in building a wide-moat business, and avoid these dubious companies. We have always been fascinated by why and how even under the most austere of conditions and environment, wide-moat business models remain resilient and continue to compound value. Some of these companies are dominant global players that focuses on sophisticated, hard-to-imitate niche products and valuable critical niches, but are largely invisible to the average consumer. Investing at an earlier stage or the tipping point in the long-term growth trajectory path of Hidden Champions has been proven rewarding. We aim to grow with these Hidden Champions by investing in these owner-operators, and grow our clients’ wealth together while making a difference in the world.


The Fund logo symbolizes that Hidden Champions are rooted by a greater Purpose, Inner Compass and values system to navigate the inevitable adversities and difficult times to serve their targeted customers and solve their most burning problems better than any competitors to generate growth resiliently; like a lotus growing up with determination, rising from the murky water, removing obstacles and remaining unstained and pure, with the lovely blooms of the lotus typifying a chaste and noble heart, opening to the light of value creation in the Asian capital jungles.

And the more muddy and opaque the water, the more beautiful the Lotus flower when it emerges; the tougher the economic environment, the more it never gives up, never quitting when things seem difficult, the more resilient it will grow to create and compound value.

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