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

FountainCap is 100% internally owned. The firm consists of 23 professionals with 9 on the investment team. Each professional plays a critical part in cultivating many of our long-lasting relationships with clients.  The team is focused in building FountainCap into a trusted local partner for global investors. 

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