- ECNS is a small-cap Chinese equity fund that is preferable given that it is less exposed to politics and ADRs.
- On a valuation basis, investors still seem to be pricing in a low return on equity which does not reflect future earnings growth potential.
- Even if earnings do not meet estimates, a middle-ground result will still generate upside as the shares are inexpensive.
- Over the long run, ECNS is likely to be an interesting hold. While it is riskier and therefore should not represent a large position in one's portfolio, there is still opportunity here.
For further details see:
ECNS: Undervalued With Fewer ADR Exposures