Anthony Bolton Coming Out of Retirement
This is a bit of an old story, but it broke while I was in India and it's, I think, been underreported. But Anthony Bolton, the Fidelity Special Situations Fund manager who earned nearly 20% annually over a 29-year career, is coming out of retirement to launch a China-focused investment fund in 2010. He gave his reasons for doing so in a recent Financial Times editorial. Among them:
The situation in China today is very similar to that in Taiwan or South Korea during their fast growth phases 20 or so years ago and in Japan before that. However, growth is occurring on an even bigger scale because of the enormous size of the Chinese population.
Jim O’Neill, head of global economic research at Goldman Sachs, has said: ”What is going on in China remains, quite simply, the most remarkable and important economic story of our, and possibly our children’s, generation.” I agree.
Because of the scale of what is happening and the effectiveness of a centrally-run economy that other emerging markets do not enjoy, the world may never see anything like this again.
Buy China. Be careful, but buy China.