Datuk Seri Cheah Cheng Hye co-founded Value Partners Group Ltd in 1993, which has become one of Asia’s biggest fund management companies, listed in Hong Kong. Under his leadership, the firm has US$14 billion (RM62.4 billion) in assets under management at present from US$5 million (RM22.3 million) during its inception and has won more than 140 performance awards. In 1971, he started as a reporter in The Star but pursued finance in the 1980s. Today, he sits on the Financial Services Development Council of Hong Kong, which advises the government on the financial services industry, and was recently nominated by Hong Kong Exchanges and Clearing Ltd., the operator of the Hong Kong Stock Exchange, as an independent non-executive director to its board.

Background of Datuk Seri Cheah Cheng Hye

17 years with The Star from newspaper folder to journalist to selling off his bike going to HK and founding fund house Value Partners.

1st asset management from listed on main board on HKSE.

Most important thing is values: putting client first.

50% progress due to luck – simply being in the right place at the right time.

Putting aside chance and circumstance, 3 distinguishing factors:

  • Character
  • Training
  • Values

Value Partners Corporate Culture:

As a Value Partners person, I pledge to:

  • Be honest and straightforward
  • Put my pride, not my ego, into the job
  • Always strive for self-improvement
  • Put clients’ interests first
  • Be fair and responsible to shareholders
  • Keep our workplace free from office politics
  • Keep secrets, maintain confidentiality
  • Uphold our reputation for creative, high-value solutions
  • Emphasize a user-friendly, cost effective approach
  • Focus on concrete results, not excessive procedures

Large scale commercial fund management requires these skill sets:

  • Excellent entrepreneur
  • Excellent investment manager
  • Excellent fund raising
  • Excellent operating ongoing business

Success formula:

  • Expert in learning how to learn
  • Reading addict: 80% of time
  • Self starter, self motivated
  • Very time and resource conscious
  • Personal integrity “My name is my brand”
  • Training as journalist helpful in putting events in historical, political, and social context
  • Not getting caught up in money disease “Money is a product of professional dedication”
  • Strong soft skills: leadership, courage, imagination, communication (in PFS)
  • Contrarian investor: beyond conventional knowledge – the edge
  • Extreme self discipline “More demanding on myself than others”
  • No ego – the “stupid-smart” idea: eager to admit mistakes and weaknesses; never satisfied with personal achievements
  • Moves quickly from one objective to another (Despite 1/3rd error rate, correct moves quickly offset the mistakes)

 

Stock Market Investing: 5 Important Lessons

1 – Value investing is the most effective investment style

  • Based on common sense: Buy the 3 Rs
    • the Right business
    • run by the Right people
    • at the Right pr