Bolton eyes small and mid-cap domestic plays in China trust

Anthony Bolton has built up a strong exposure to mid and small-cap stocks in his Fidelity China trust as the esteemed stockpicker aims to tap into the country's increasing domestic consumption.

Bolton's China Special Situations trust has about 100 holdings, with just 43% of the portfolio in large-cap stocks over $5bn, well under the 75% benchmark. In mid caps, companies with a market cap of $1bn to $5bn, Bolton has built up a 33% exposure, against 24% for the benchmark. It is in small caps where the renowned contrarian is vastly different to the MSCI China index. Bolton has 22% in smaller companies, which comprises only 1% of the benchmark. "My whole thesis is that the economic drivers of China are changing away from the export and manufacturing areas and towards the domesti...