A lot is going on in the background of exit-driven Jade Road
“…Why invest in Jade Road? If you want some exposure to the private sector space in Asia, then we are the only public listed vehicle listed on the LSE that gives you that exposure to that space…”
It’s tough when your portfolio has assets in China and Hong Kong. Not because the assets are of poor quality, but because there’s a lingering perception that the company invested in lacks transparency and is domiciled in a regime that does its own thing – take the China government’s stance on climate change for example, although admittedly what exactly that is, is open to interpretation.
Jade Road Investments is unapologetic about its portfolio constituents – the ones inherited and the ones recently invested in.
Take DocDoc for example. This is a virtual network of physicians and hospitals supporting patients to find quality medical care in Asia. Jade, in its previous iteration as Adamas Finance Asia, was a cornerstone backer and although DocDoc doesn’t release its revenue figures, it has gone on record that they are of the stellar variety. It’s the world’s first patient intelligence company and has attracted the attention of other UK-based funds. DocDoc isn’t in China though. It’s in Singapore.
What is in China are two portfolio constituents that investors question should be part of the increasingly medtech, fintech focused Jade. There’s the dolomite quarry that is Future Metal Holdings operating at 10% of capacity. Suresh Withana is the investment manager responsible for Jade’s portfolio and he reminds investors that Jade’s intention is not to become operators of that asset. It’s very happy for others to take control of the once mothballed business.
What does contribute to a little bit of Withana’s insomnia is another frequently asked question which is about investee company Fook Lam Moon’s capability of servicing or redeeming its $26.5 million convertible bond. The answer to that plus other investor queries have been collated and answered on Jade’s recently RNS’d ‘Frequently Asked Questions’ section on its website.
The most frequent frequently asked question though is when might investors get news about exits, or anything for that matter. Whilst it’s lovely to learn about ESG policies and FAQ website adornments, just when is Jade going to release some newsy news? Withana doesn’t waste words. “Until something is actually done, we don’t talk about it.”
Listen to Suresh give suggestions to Sarah Lowther about what the potential news flow might be, why the company is so excited about the ESG policy that’s just been formally adopted and what is keeping him awake at night.
Watch Suresh talk through the 2021 Interim results released in September that reveal an end-of-year exit focus.
Follow the company on Twitter – @JadeRoadInvest
Read the corporate presentation
View the Annual Report
The author was remunerated but does not hold shares in the company