WHY FOUNTAINCAP?

FountainCap has a relentless focus on researching and understanding the dynamic changes of the Chinese economy. We read China not as a large homogenous country but a composition of 33 states (provinces), each with its own economics and demographics as well as its own cultural status. Having an in-depth understanding of the varying social and economic development factors within different tier cities in China not only can help validate the growth prospect of existing industry leaders but can also lead to the discovery of opportunities that are often not understood or not identified by the public. We employ a bottom-up approach in selecting stocks of quality companies with strong fundamentals that we can hold over the long run. All of these translate into an investment portfolio that is well positioned to capture China’s ongoing growth and transformation.

Philosophy & Process

"If you are not willing to own a stock for 10 years,  do not even think about owning it for 10 minutes."  - Warren Buffett

 

In order to understand the nuances of the Chinese economy and, therefore, to identify and capture long-term investment opportunities, we believe an active bottom-up approach is needed. 

In summary, our investment strategy and philosophy are built on the following principles:

Fundamental Research
The complexity and implication of China transformation can only be understood by thorough fundamental research.

Long-term Driven
Short term trading provides least value to long-term results. We do not time the market for most of investment decisions.

Bottom-up Stock Picking
We employ a bottom-up approach enhanced by our “backpack” grassroot research to generate value and portfolio appreciation.

Principles & Culture

Our success reflects the beliefs and values that we represent. We aim to ensure our interests remain long-term and closely aligned with those of our investors. 

Below are 5 FountainCap guiding principles that we adhere to:

Clients’ interests always come first.
We believe fiduciary relationships go beyond contractual obligations and should serve as the anchor in all our business decisions.

Integrity and honesty are requisite values of our people.
We believe only through upholding the highest ethical standards in everything we do can the firm survive and prosper. 

Fairness and transparency promote merits-based advancement.
We believe for the firm to be successful, we must be able to attract and retain talents in a highly competitive industry.

Teamwork at its best creates synergy.
We believe success can only be sustained through collective efforts. There is no room for any individual that jeopardizes the interests of the firm and its clients.

People and reputation are the company’s most valuable assets.
We believe the firm’s legacy is built upon an uncompromising adherence to the laws and ethical principles that govern us.

Responsible Investment

As a fundamental investor with a long-term investment horizon, Responsible Investment is a core tenet of FountainCap’s investment philosophy. 

We recognize that Environmental, Social, and Governance (ESG) issues can materially impact a company’s business and thus affect our clients’ overall investment results. Therefore, as part of our fiduciary duty to our clients, it is paramount that ESG issues are evaluated alongside other fundamental drivers when evaluating the attractiveness of an investment.


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Our Team

Led by veteran China investor, Frank Ding, the investment team are sector/industry specialists with a combined China investment experience of over 60 years and across eight global market cycles. All professionals in FountainCap are equipped with both global investment knowledge and expertise and have a deep understanding of China's economy and market. The company's objective aims to consistently generate superior long term investment results and provide the best services to its clients.

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FountainCap is licensed and regulated by the Securities and Futures Commission (hereinafter referred to as the "SFC") in Hong Kong. FountainCap is also registered with the U.S. Securities Exchange Commission (hereinafter referred to as the "SEC") as a Registered Investment Adviser. The information, tools and materials introduced on this website are provided by the Company and are not reviewed and approved by the SFC or the SEC. The above mentioned regulatory statuses do not imply a certain level of skill or training. The information, tools and materials described on this website are for general information only and do not constitute an invitation or offer to advertise or distribute, sell, offer, advise or buy any securities, funds or other investment instruments of the Company or third parties. The information, tools and materials described on this website are not intended to provide any form of advice, including but not limited to investment, taxation, accounting or legal advice. Past performance is not an indicator of future results. You should consult your own financial, tax and legal advisers as needed prior to making investment decisions and should carefully read the relevant product contracts and offering materials to ensure you can bear the risk of investment.

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