One of the worst performing stocks for the portfolio was Cheil Worldwide (XKRX:030000), a Korean advertising agency. Weaker handset sales from Cheil’s major client, Samsung Electronics led to decreased advertising revenues. This, along with a tough economic environment in Europe, offset the company’s progress in China. We are taking advantage of the sell-off by increasing the allocation, as the opportunity to help companies with their branding initiatives in China can become meaningful in a few years’ time.
From Matthews Pacific Tiger Fund (Trades, Portfolio) Q4 2014 Commentary.
