Investing in Small Caps: A Buy Side Perspective

SGX is launching its new research scheme for listed companies in Singapore - SERI (SGX Equities Research Insights), on 20 October 2009. This scheme replaces the old research scheme. I attended SGX's SERI Pre-launch Luncheon Seminar, "Target Institutional Investors", on 14 October 2009. Here's my main take-away:

Investing in Small Caps: A Buy Side Perspective
by Mr. Christopher Wong, Investment Manager, Aberdeen Asset Management.

I was asked to attend the luncheon mainly because Mr. Chris Wong was going to be there. From my personal understanding, Mr. Chris Wong is a well-respected veteran in the industry. Aberdeen Asset Management is one of the fund managers that really do its homework in understanding the companies that they invest in and they do it with a view of long-term investment perspective (You may be surprised that not all fund managers do that).

Here are some important key points in his brief presentation:

What do we look for in a company?
- Business prospects / strategies
- Management team
- Financials
- Corporate transparency
- Commitment to shareholders' value.

Role of an Institutional Investor
A) Governance analysis as investment analysis

1. Who owns the company?
2. Transactions with related companies
3. Who are the independent directors
4. Financials and non-financial disclosures

B) Voting and AGMs
C) Shareholder engagement.


Disclaimer:
Nope, I am not, in any way, related to Aberdeen Asset Management or Mr. Christopher Wong