After dropping out of a master’s degree program at the Helsinki School of Economics, Petri Deryng left
So how did he do it?
Shortly after arriving in Thailand, the Thai baht dropped by 45 percent due to a regional financial crisis and the country slipped into the worst recession in 30 years. Naturally, investors were selling out stocks before they get burnt but Deryng did otherwise. “If you see that it’s at bottom and if you have some kind of facts, numbers to rely on, then yes, it’s time to buy.”
Then Thai markets began to pick up after he entered the fund business. The low baht helped boost the export value, while tax cuts increased consumer spending, leading to economic growth and so did Deryng’s business.
This Finnish fund manager invests in companies that are trading below their actual values, he digs deep into their price-to-earnings, price-to-sales and sales to market value ratios before investing as much as 10 percent in the ones he likes.
“That’s the advantage that he has over some other fund managers: he doesn’t really need to make quick profit,” said Tom Paiboon, head of equities at Bangkok-based Tisco Securities Co., who Deryng because he subscribes to the broker’s research. “He’s done well in the past three to five years because that’s how he’s taken his investment approach.”
Investments among the fund’s top 10 in
Since Elite was formed in 1999, returns have increased sevenfold while SET increased by threefold from the end of 2000 to 2003.
One of Deryng’s biggest holdings was Bank of Ayudhya, in which he sold out in 2006 after doubling his investment in two years, while one of his first investments, Regional Container, was sold in 2004 for more than 10-fold gain in five years.
For 2007, the top 10 performers include Pranda, a maker of gold and silver rings and bracelets, and Indorama Polymers Pcl of Bangkok, a producer of pellets used to make plastic containers.
With the economic slowdown in
“We’ve had three frustrating years in
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