During the third quarter, we exited China Vanke (SZSE:000002), one of our portfolio’s long-standing property holdings as we believed its boardroom battle for ownership created potential for risk. We also added a new position in an Indian software business that we have researched for many years. Its stock price had come down significantly due to certain challenges that we believe can be corrected. The business holds attractive potential over the medium term. In addition, we bought into an attractive advertising business in China as local companies invest more in building their brands—a trend that should continue to develop going forward. We also added a Chinese health care business to our pool of health care holdings. This is a vertical we are excited about, given Asia’s currently low GDP spending on health care versus that of Western markets, as well as the increasing skill sets of Asian companies.
From Matthews Pacific Tiger Fund (Trades, Portfolio) fourth quarter 2016 commentary.
