Anthony Bolton, the star fund manager of the £510m Fidelity China Special Situations, said increased political certainty in China following the appointment of new leaders and an upswing in investor sentiment will open the door for better returns in 2013.
Bolton, once the poster boy of the fund management industry for his investment success, has been hammered since he moved to run money in China, with his fund posting negative returns last year.
Bolton predicted that China’s A-Share market, its renminbi denominated market, would pull through a three-year trough to deliver better growth in 2013.
Bolton has been driving a move into internet stocks this year, snapping up positions in Baidu, Sina and the Alibaba Group. His largest holding as of September was in Ping An, which was recently sold out of by UK bank HSBC.
Bolton has committed to run the fund until April 2014 but said he would decide whether to extend this next July.