A Norwegian portfolio manager has been buying Chinese stocks from Americans that has been forced to sell them due to US sanctions.
The acquired assets has helped him outperform the market and his peers, according to a report from Bloomberg.
Fredrik Bjelland, the head of Skagen AS’s emerging market fund, has bought his way to big positions in companies like China National Offshore Oil Corp. and China Mobile.
Chinese stocks now make up more than one-third of the Norwegians $1.5 billion portfolio.
Bjelland told Bloomberg that the Chinese stocks are “mispriced” because sanctions have forced US holders to dump them.
China National Offshore Oil Corp., among other Chinese companies, were sanctioned by the Trump administration, due to the accusation that they were helping the People’s Liberation Army intimidate China’s neighbors.
An executive order set a deadline Nov. 2021 for US investors to dissociate with the blacklisted companies.
“One thing that we like, as contrarian investors, is buying from people who have to sell at an any price. That gave us a very, very good price,” Bjelland said.
Bloomberg rankings show the Bjelland’s fund has beaten nine out of 10 peers so far in 2023, and 81% in 2022.