Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns on capital, and are on attractive valuations.

I have a simple investment philosophy: buy good businesses run by competent and honest people, and buy them at a price that leaves enough of a margin of safety for mistakes or bad luck. I try to buy companies that other people are not looking at. That is where I find bargains and an adequate margin of safety, but it also tends to lead me away from big stocks.

As a result, Fidelity Asian Values has most of its capital deployed in small companies (those with a market capitalisation of up to £5bn); stocks above that threshold only make up about 15% of the trust’s holdings as at the end of July 2021. The trust also has a value bias given my focus on companies that are mispriced, either because they are yet to be discovered by investors or are currently undervalued owing to near-term concerns.

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Nitin Bajaj

Nitin Bijaj manages Asian Smaller Companies Fund (SICAV) and Asian Values PLC at Fidelity. Nitin started at Fidelity in 2003 as a research analyst in London. In 2007, he became an Assistant Portfolio Manager in 2007 for the Fidelity Global Special Situations Fund in the UK, then in 2009 Nitin moved to Mumbai to manage Fidelity’s domestic Indian equity funds. In 2012, he moved to Singapore to manage the Fidelity Asian Smaller Companies Fund (SICAV) which he does to this date.