Chatterjee’s biggest position, and the top contributor to the fund’s returns over the past three years, is Tencent Holdings Inc., a Shenzhen, China-based Internet company. Chatterjee bought shares when the fund debuted, even though it was not clear to him where the company’s profit growth would come from.

“We took a leap of faith because we knew how much potential there was in e-commerce,” said Chatterjee. It didn’t hurt, he added, that the space was somewhat insulated from competition, because the sites of major American players such as Google Inc. and Facebook Inc. are blocked by the Chinese government.

Tencent, once primarily a gaming company, today offers messaging, social networks and streaming television programs. The stock climbed 34 percent this year and tripled over the past three years, with dividends reinvested.


Sportswear Opportunity


Anta Sports Products Ltd., which Chatterjee bought early last year, is up 62 percent this year, driven by rising sales of the company’s sportswear. More people in China are becoming health conscious, said Chatterjee, but they can’t afford the $130 or $140 it would take to buy Nike, Inc. running shoes. Instead they buy Anta’s products for $30 to $40.

Two of the fund’s largest holdings produce mobile phone parts. Sunny Optical Technology Group Co. Ltd. makes cameras and AAC Technologies Holdings Inc. makes speakers. Both of these components are making up a bigger share of a phone’s cost, even as its total price drops. “It’s a lovely business,” Chatterjee said. Sunny’s shares more than doubled over the past two years and AAC’s stock has almost doubled over three years.

Among the detractors from performance is Great Wall Motor Company Ltd., the biggest maker of sport utility vehicles in China, which fell 36 percent this year. The stock slipped as foreign carmakers including Volkswagen AG and Honda Motor Co. slashed prices, trimming the cost advantage domestic firms traditionally have enjoyed.

“They are in the right spot and they have quality management,” said Chatterjee, explaining why he’s holding onto Great Wall shares. He is also sticking with NagaCorp Ltd, which operates a casino in Cambodia. The shares are down 16 percent in 2015, including dividends.


Stock Selection


While he pays attention to economic and political changes in Asia, Chatterjee said his main focus is stock picking.