Anthony Bolton points to value in Chinese SMEs

Fidelity Worldwide Investment’s Anthony Bolton says he is finding opportunities in small to medium-sized companies in China during the current volatility.

Bolton, who runs the £584.8m Fidelity China special situations investment trust, says opportunities arise because the sell-side research in China is poor.

He says: “A lot of the sell-side research is short term. When you look at the medium and sma-ller-sized companies, it falls off dramatically, producing interesting opportunities.”

Bolton says he has a less concentrated portfolio than he expected when he first moved to Hong Kong. He currently has 110 holdings in the fund.

The trust’s total return is down by 34.5 per cent on a price basis over one year compared with the peer group, which is down by 27 per cent, and the MSCI China benchmark, which is down by 23.9 per cent.