Friday, July 4, 2014

Interview With Liew Xun of Liew Capital Blog

interview series - liew capital
My next interviewee in the "Interview With Fellow Investors" series is a young retail investor with considerable size of Asset Under Management (AUM). Again, I got to know him via blog commenting and email exchange.
His name is Liew Xun and he is pretty proud of his two-words Chinese Name (continue reading to find out more from his own mouth). From his blog (Liew Capital), his stocks has double digits annual returns since 2011, which is very impressive. Keep going, Liew, the best is yet to come ;-)
Now, let's take a look at Liew Xun's investment journey so far...
Q1 : Can you give us a brief introduction about yourself?
Liew Xun here, currently studying at NTU. No, I’m not a PRC despite my two-word name although I do get asked that a lot. On the bright side of having a unique name is that googling ‘liewxun’ would almost certainly turn up this interview in the future. I currently dominate the google searches for ‘liewxun’ with related links (including my friend’s blogs) from page 1 to 100.

Other ‘Liew Xun’ clones have appeared to challenge my dominance so far, apparently there’s ‘Liew Xun the badminton player’ ‘Liew Xun the Visual Basic Genius’ ‘Liew Heng Xun’ the chess player(I play chess for school too and I hope to beat this guy one day). I lost my dominance in the google search for ‘Liew Xun’ with a space.

It’s my main goal in life to eliminate these clones and to reassert my dominance as the original ‘Liew Xun’

Q2 : Are you a full-time or part-time investor at the moment?
Part time-investor. I run my own fund with my friends + family and personal funding. It has to be part-time as I have my hand busy with CCA’s, School and internships (Currently in Vietnam doing an internship in Wilmar. Have another interesting one lined up afterwards.)

I believe that full-time investors get the ‘itchy fingers’ from staring at the stock market every day and let their brokers earn commissions, so sometimes being a part-timer is a good thing.

Q3 : When (at what age) did you start investing in shares and who has influenced you the most?
18, bought in to GLP ipo, sold it off because I had no idea what I’m doing, and proceeded to lose a whole chunk of money which I only recovered in 2012-2013. I can’t really pinpoint who influenced me, but it’s something like my mum, Warren Buffet, the money section in the Straits Times, my inner scrooge and the POSB squirrel.

Q4 : Do you view yourself as long-term (holding shares in years), short-term investor (holding shares in days/months) or mixture?
Umm a mixture. I have a target price for each of my stocks, if it suddenly shoots up 15% the next day and hits that price I have no qualms selling it off straight away. Of course, I adjust my target price with any major changes in the company/industry.

Q5 : What is your basis of selecting the shares to invest (e.g. basing on fundamental analysis, technical analysis or other methods/sources [share a little bit more details if it is the latter])?
Fundamental analysis. Have no idea how to do technical analysis, although I do come up with interesting ideas from time to time. Like finding two stocks with close correlations in their stock price and company profile. Buying one and shorting the other when the difference in stock price becomes too large (Capitaland and Keppel land is a very good example)

My steps include
1) Realizing that you are a retail investor and humans have limited ability to predict the next big thing.
2) Have a check-list of 18 fundamental points to judge a stock, which checks in profit stability, debt, cash flow, productivity and use a basic financial model based on weighted average to compare a stocks fundamental points, historical P/E, future outlook, to find out whether the stock generates sufficient returns at its current price.
3) Buy in
4) Wait…….
5) ????????
6) Profit!!!!

Honestly Step 1,4 are the hardest.

Q6 : What is your targeted and achieved annual rate of returns (%) so far?  

100%. In the mean time I also target to get GPA 5, a big house and to strike the lotto 3 times in a year. My achieved rate of returns : “6 to 10%”

Q7 : What is your most recommended online investing resource (site or blog) to share with our readers?,,,, Also if you are interested in current market events.

Q8 : Besides shares, what other investment are you involved in (e.g. Real Estates, Bonds or REITs etc)?
No money for Real Estate, current have a few lots in Olam bonds (Hey Temasek in guaranteeing my interest cheques) and Preference shares. I also built up a diversified portfolio in REITS which now make up 20% of my portfolio.

Fun fact: When they are not near their XD,CD date, bonds/preference shares seem to trade within the range of their par value + 1 annual interest payment + a slight premium.

Dbs 4.7%: = 0.668% premium
Genting = 0.166% premium
Hyflux 6% = 0.94% premium
OCC 5.1% = 0.95% premium
Olam 6.75% = 0.51% premium

So if any of them have a negative premium and are not near their XD date, it usually goes back up. (Hyflux was 105.1 a few days back)

Q9 : What is your current Shares Investment portfolio size (in range, no need specific)?
AUM 150k+ in my private family fund, AUM 85k+ in my fund opened with my friends. All money goes to paying my parents (since they are the majority shareholders) and paying my tuition fees

Q10 : If the readers what to get in touch with you, how to get hold of you? (Sharing of your website/blog/social media profile etc..)
Google ‘liewxun’ to pick up on my embarrassing past history. Or

Yet another retail investor with witty online presence, don't you think so? I hope he is as witty in person. If I've got chance to meet up with him, will share with you folks more about him ;-)
By the way, if you are a retail investor and would like to be featured in my "Interview With The Fellow Investors" blog series, please feel free to email me at

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