Ninety One, a global asset manager, has seen its Asia Pacific ex Japan strategy deliver exceptional returns under portfolio manager Charlie Linton. Established in Cape Town in 1991 under Investec Group, Ninety One manages £184 billion ($351 billion) globally, with dual listings in London and Johannesburg. The fund, open to Australian investors, returned an impressive 51.3 per cent over the past year, significantly outperforming its benchmark. This success stems from a high-conviction approach combining quantitative analysis with behavioural psychology, seeking opportunities where market bias overshadows rising fundamentals to uncover “unloved gems.”
Linton’s willingness to challenge market sentiment has yielded remarkable gains. A prime example is the early 2024 investment in Chinese consumer discretionary stock Pop Mart, known for its viral Labubu monster dolls. Despite widespread hostility towards Chinese consumer markets, the bet returned 650 per cent. Similarly, a three-year hold in South Korean semiconductor firm SK Hynix generated over 1000 per cent as the artificial intelligence boom created a severe memory chip bottleneck. More recently, LG Electronics delivered a swift 150 per cent surge in three weeks, driven by its practical robotic fridge technology.
The fund continues this contrarian lens. Current high-conviction positions include South Korean industrial giant HD Hyundai Heavy Industries, appearing mispriced despite surging shipbuilding and AI data centre engine demand. Thailand’s Kasikornbank is poised for growth as corporate spending unblocks. Ninety One also maintains faith in Australian gold miner Northern Star Resources, adding to its position amidst market scepticism. Conversely, the fund exited Australian mining titan Rio Tinto after a 56 per cent return, citing less potential in iron ore. This disciplined approach, identifying undervalued fundamentals, remains Ninety One’s core edge in generating significant investor returns.
