Some people just don’t get it.
Via Bloomberg:
Anthony Bolton, who manages the Fidelity China Special Situations Plc (FCSS) fund, told the FinancialTimes he underestimated the difficulty of carrying out duediligence on small- and medium-sized companies in the country.

Bolton was forced to sell his holding in one such companyafter it falsely reported sales growth of 30 to 40 percent, hetold the newspaper in an article published today. Bolton hiredfive external research groups to find Chinese companies that areoverstating their sales growth, according to the article.

Bolton’s China fund has fallen 38 percent on a total-returnbasis since it started in April 2010 with 460 million pounds($715.1 million), the FT said. 

Our comments:

1. Poor Anthony!
2. Who starts a “China-focused” fund in 2010, at the top of the hype on the biggest bubble in history?
3. Who are the idiots (sorry for our French) who invested in his fund? 
4. Is he so naive to trust what the Chinese companies report in their statements? Has he been watching TV or reading the newspaper for the last 5 years or so?

We almost feel like no comment is needed here… the story speaks for itself.

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