Pella Funds has increased its exposure to China by 'well over 10%,' in recent months, according to Jordan Cvetanovski. 'Any stimulus which we expect to happen out of the Chinese authorities would be extremely favorable for these companies, and given they have very low valuations and low positioning by global managers,' the portfolio manager told CNBC.
Investors should consider quality firms in China and Europe with superior valuations that have executed very well despite the 'dire' political and economic situations in these markets, according to Pella Funds' Jordan Cvetanovski. In the last two to three months, Pella Funds has been looking for opportunities in China and has increased its exposure to the region by 'well over 10%,' said Cvetanovski, chairman and chief investment officer at the company. The firm's strict focus on valuations has led it to regions other beyond the U.S., such as Europe and Asia. He told CNBC's Sri Jegarajah that the firm's China investments may need more of a boost from the country, which is currently introducing more fiscal stimulus to revive its economy. Even if such steps are not taken, the investment opportunities Pella Funds selected have still executed well despite the volatility in the market.totaling 10 trillion yuan ($1.37 trillion) to tackle local government debt problems. The Beijing administration signaled more economic support will come in 2025 as it seeks to kickstart growth for the world's second-largest economy. 'Any stimulus which we expect to happen out of the Chinese authorities would be extremely favorable for these companies, and given they have very low valuations and low positioning by global managers,' Cvetanovski said. 'We anticipate very strong returns, and we think the time is effectively now to position for this leading into the next year, given all the fear surrounding tariff wars and what have you,' he adde