Editor’s note: As of 9/22/11 Bali Zhu no longer manages a Covestor model
Bali Zhu of Naperville, Illinois holds not one, but two Master of Science degrees: one in Computer Science and another in Physics. He combines his technical skills to investing, where he focuses on small cap stocks with a combination of technical and fundamental characteristics that present attractive investment opportunities.
Zhu manages Covestor’s new Small Cap Opportunistic model, which is a long-short portfolio that combines a macro view of overall market conditions with a bottom-up approach that looks at individual small-cap stocks. Some of the fundamental factors that Zhu considers are whether a company has had an earnings revision, the company’s Price/Earnings ratio and whether the company has a high projected 5-year growth rate.
For asset allocation, Zhu aims for:
Typical number of holdings: 5
Each weight: 15 ~20%
Retain 0~25% of cash for rebalancing
Current top positions include:
- ReneSola Ltd. (ADR) (NYSE: SOL), a manufacturer of solar wafers and producer of solar power products based in China.
- The LGL Group, Inc. (AMEX: LGL), which is engaged in manufacturing electronic components.
- China Marine Food Group Ltd (AMEX: CMFO), which is engaged in the business of processing, distribution and sale of processed seafood-based snack foods, as well as the sale of fresh and frozen marine catch.
- Longwei Petroleum Investment Holding Ltd (NYSE: LPH), an energy company engaged in the wholesale distribution of finished petroleum products in the People’s Republic of China.
