On the small-cap side, Mandarin Oriental (SGX:M04, Financial), a luxury hotel chain based in Hong Kong, is among our ten largest positions in the portfolio. Real estate plays a key role here, as we believe the fair value of Mandarin’s owned hotels around the world exceeds the company’s enterprise value. Mandarin also has a growing hotel management business that we believe represents a high-margin, capital-light way to take advantage of the value of the brand with minimal financial risk.
From First Eagle Investors' Income Opportunities in Asia PM's Perspective.
