Lumiere Capital’s 2017 letter is now out. You can access and download it directly from their website. They have a “deep value” style of investing, with significant exposure to Hong Kong-listed small/mid cap stocks, a market segment they believe offers “the best combination of growth prospects and deep undervaluation.” The philosophy and portfolio characteristics feel almost reminiscent of Value Partners (in their early days).

In the letter, they make a similar point to the one Desmond Kinch made recently about the relative valuations and performance of small caps versus large caps in Hong Kong. This, in part, explains the headwinds faced by the fund over the past 2.5 years. They also discuss a number of companies / holdings, including Dawnrays Pharmaceutical, Technovator and Fanhua. Worth a read!