Activist Fund Sees Developed Asia Stocks Catching Up to Rally

(Bloomberg) -- Things will get better for most of Asia’s developed stock markets, according to Quarz Capital Management Ltd.

“All developed Asian countries, especially Japan, Singapore and Australia, have started to stimulate their economies massively,” said Jan Moermann, founder and chief investment officer of the activist fund that holds Asian stocks. “We expect a potential catch up of these markets to happen by the end of the year.”

As U.S.-China frictions grow, Asian equities are set for their biggest quarterly underperformance relative to global peers since 2015. The MSCI Asia Pacific Index has climbed 13% since the end of March, compared with a 17% advance in a gauge tracking global shares.

The unprecedented central-bank stimulus in a short period of time, coupled with the confidence that the coronavirus pandemic can be handled, is making investors look 12 to 18 months ahead, Moermann said.

He is cautious on Hong Kong equities amid rising tensions between the U.S. and China following a new national security law for the former British colony.

Quarz Capital Management is a research-driven investment advisory firm that seeks to earn above average, long-term returns by identifying value investments across the globe. It buys stakes in businesses that demonstrate clear value-enhancing potential for operational, financial or strategic change, according to its website.

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