Tuesday, March 25, 2008

China Trade

I bought some CHN - the China Fund - and CNY - a new RMB ETF. The latter should appreciate against the USD in the long-term as the Yuan is revalued - I'm investing some of the dollars in my Interactive Brokers account into it. The former seems to me to be the best of the various China funds. They have access to Shanghai A shares as well as the ability to invest in private equity in China. But they recently moved money out of the PRC and into the Taiwanese market before the recent fall in the mainland markets. The fund has outperformed both TDF (Templeton Dragon Fund) and GCF (Greater China Fund) and FXI (H shares index ETF). I like what I read about the manager. Clearly, as shown by their recent moves and their portfolio they are not an "index hugger". I also trimmed some risk in XLF, BWLD, and SHLD in this morning's rally. I sold out of SHLD entirely. Likely, I will buy back in again at some point.

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