Platinum delivers long-term gains despite market gloom

The financial meltdown that culminated in 2008 made it evident to some economists that the crisis was certain to rear its sinister head again. From the subprime crunch to the derivatives debacle, the world saw a myriad of catastrophes that bankrupted individual depositors, too-big-to-fail companies and even whole states. But fund manager Platinum Asset Management has proven time and again that investors can survive a crisis unscathed - and even profit hugely from it.

"We have a history of making money when the markets are down," says Kerr Neilson, managing director. "That is so because we are quite good at reading macro distortions. We look for mispricings and anomalies in stocks driven by short-term events where investors, in their scared or elated state, lose sight of the longer-term prospects of companies."

A contrarian manager, Platinum's philosophy involves avoiding the pack and exploiting undervalued companies. By taking advantage of inconsistencies in individual stocks and dysfunctional markets, the firm has mastered a strategy that consistently delivers long-term gains from equities.

"We don't get caught up in the crowd," Neilson says. "We understand that when there is a huge convergence of views, the market becomes super critical."

Platinum's fund offerings have outperformed their respective benchmark indices by significant margins. The Platinum Japan Fund has grown 15 per cent compounded yearly since its inception in 1998 against a Japanese market that has risen not quite 1 per cent. Meanwhile, the Platinum International Fund has risen 13.4 per cent compounded per annum against a market up 5.7 per cent compounded per annum since 1995.

With more than HK$158.8 billion under management, Platinum has focused on international equities using a thematic bottom-up stock selection approach. It is on the lookout for exciting but underrated companies in Asia, which provides opportunities for underpriced stocks.