Portfolio: We seek to discover and nurture the leading global
companies of tomorrow
Portfolio Policies
Key positions
(HKG:512)
A top-60 China-based healthcare company focused on
the production of pharmaceutical preparations primarily covering cerebro-cardiovascular
and ophthalmology segments, and hormones/steroids.
Harmony has been executing a multi-faceted Value
Creation program with Grand Pharma targeting domination of specific therapeutic
conditions through M&A, industry consolidation and value chain extension.
The Harmony Fund invests in and helps small to medium-sized public companies grow substantially from regional leaders, to national and global leaders.
We select our targets carefully and only after
completing a rigorous proprietary fundamental research process do we invest. This process usually lasts
from 6 months to 2 years and involves hundreds of interviews with the Company,
its suppliers, competitors and customers.
We aim to accumulate a substantial stake in
each of our portfolio companies to signal our commitment to the Company and to
secure our standing in the discussions with the Company’s management team.
We disclose our holdings once we have more than
5% of the target companies, as required by the Hong Kong Stock Exchange.
We ideally aim to hold 5-10 companies within the Harmony Fund's
portfolio, although this figure may be lower during our portfolio construction
phase.
We exit a position after our value creation
programs have been implemented and results have been achieved. We might also
exit a position if we conclude after all efforts that the Company's resistance to change is
insurmountable.
(HKG: 206)
TSC is a China-headquartered, global manufacturer of and total solutions provider for oil & gas services equipment for use in offshore and unconventional onshore applications.
Historically, the Harmony team advised the Company
on its market positioning to focus on cost-effective, high-value engineered
products. Over the past 4 years,
Harmony’s Value Creation program with TSC has driven development in product
line extension, capital efficiency, operational efficiency, and enhanced
corporate governance & business unit structures.
(HKG: 72)
Modern Media is China's leading lifestyle media
company. With dominant positions in both digital and print magazines the
Company aspires to be a cultural information platform between the greater China
region and the world at large.
Harmony’s Value Creation program has been
responsible for driving the Company’s development and strategic focus toward
digital media, efficiency gains and cost-cutting in the legacy print media
business & international content alliances through partnerships with major
global media houses like Bloomberg and The New York Times.