The JP Morgan Asset Management Fund, which has doubled its assets over the past year, has placed the booming underwriting market for Asian technology companies as its top investment priority in 2021.
JP Morgan director Oliver Cox said that the IPOs of Asian technology companies this year will provide an opportunity for early investment in “future winners for several years to come,” as his team closely monitors potential deals, including: “JD Logistics” and the application Doyon is owned by Bitdance in the Hong Kong Stock Exchange and Philip Kart Online Service in India.
The fund manager believes that programming and e-commerce companies, the leading electronic chip makers, and entertainment games will become the “best four sectors” in the fields of technology from the next five to ten years.
The performance of the fund, which has total assets of $ 1.1 billion, has increased 16% since the start of the year.
A profitable strategy
The strategy of investing in the initial public offerings of Asian technology companies achieved a distinguished return, amid the adoption of huge stimulus packages to reduce the repercussions of the pandemic, which led to a significant increase in individuals’ investments in the financial markets, and the boom in domestic activities due to the closure measures.
And the value of the shares of “JD Health International” has doubled since its listing on the Hong Kong Stock Exchange in early December, and the share of “Kwaishu”, a competitor of “Doion”, has more than tripled since the company was listed last Friday.
The share of “Dada Nexus” of the delivery platform operator in China, supported by “JD.com”, is the largest holdings of the fund managed by Cox, and the share has risen 178% since its listing last June. Among the remaining major holdings of the fund, the “Mituan” company In addition to “Taiwan” semiconductor manufacturing company, “Nintendo”.
Cox said that the Corona pandemic has led to radical changes in the behavioral patterns of individuals amid increasing the dependence of many individuals and companies on cloud technology and e-commerce, indicating that he is not afraid of the change in the performance of some stocks as a result of being affected by economic cycles after the large gains recorded by the shares of technology companies in Recently.
Cox added, “A lot of people focus on whether that sudden performance will last longer, or only a year.” Stressing that reliance on digital platforms in the long term will be “much stronger, which will be reflected in the profits of these companies during the current and next years.”