Aroau Capital Holding
ACH A-Share Fund No.8
Fund Overview
The ACH A-Share Fund No.8 offers investors dynamic, actively managed exposure to China's vibrant equity markets. Primarily focused on high-quality companies listed on the A-Share market and the Hong Kong Stock Exchange, this wholesale investment scheme is tailored for investors aiming to tap into China's growth potential.​
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Investment Philosophy
China has long been a polarizing investment destination, driven by sharp swings in market sentiment. Passive exposure alone could leave investors vulnerable to prolonged downside risks, especially as China navigates an extended deleveraging cycle.
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Yet avoiding China altogether could mean significant missed opportunities. The economy is constantly shifting, with capital frequently migrating between sectors as prospects evolve. When equities fall out of favor, funds typically flow toward government debt, highlighting the dangers of misallocated capital.
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Our approach cuts through this noise. We invest using a disciplined, bottom-up, first-principles strategy—focusing on company fundamentals rather than short-term market sentiment.
Our Approach
Successful investing in China hinges on managing downside risks effectively. We build our strategy around a concentrated portfolio of 5–9 high-conviction investments, each rigorously vetted to minimize downside exposure. Only after clearly understanding these risks do we cautiously map out a conservative growth trajectory—grounded in the total addressable market and brand strength of each company’s products.
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Our analysis dives deep into the fundamentals, examining the resilience of demand and assessing threats from potential substitutes. True conviction emerges only when our detailed downside assessment aligns convincingly with meaningful upside opportunities.
Market Dynamics
In China, an investment thesis often takes longer to materialize. Many institutional investors are passive, index-driven holders who have minimal incentive to perform deep, bottom-up research. Meanwhile, market narratives are frequently shaped by pessimistic viewpoints—often from academics and social commentators who have no direct financial stake—leading investment decisions to be influenced more by emotion and purported "scientific facts" than rigorous analysis.
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Adding to this complexity, regulatory interventions in China introduce another layer of unpredictability. Policy decisions made by regulators who don’t share investors’ financial interests can lead to volatility—essentially, increased risk from the market’s perspective.
Our Commitment
The ACH A-Share Fund invests with a clear, first-principles mindset. At the heart of our approach is accurately evaluating management teams on their commitment and ability to uphold these principles. Our primary goal is delivering superior long-term returns without subjecting investors' capital to unnecessary risk. Although market conditions can fluctuate significantly, our objectives and disciplined investment strategy remain firmly anchored.