1. April 5, 2011
Mr. A----------------
Founder & Portfolio Manager
A---- International Investors
55 Benedict Place
Greenwich, CT 06830
Dear Andrew,
I wanted to share the performance of my trade ideas from 2010. Like last year, to delineate those
ideas which I’ve pounded the table on, I’ve highlighted my own high conviction ideas in TAN and
RED in the attached spreadsheet. Pair trades are in yellow.
What I got right:
My best trade was Orient Overseas. I knew from my past research the intermingled history of the
family behind this company and their links to the Chinese government during WWII. I then visited
this shipping company in the winter of 2008 and liked it. I started pushing OOIL in January 2010
when I saw the company had announced a surprise transpacific rate hike in slow season. I
pushed OOIL over the next few quarters as their results subsequently beat analyst estimates.
The measure by which I pound the table on a stock is if I would buy the stock myself. In the case
of CIT, my next best idea, I did. I showed this stock to only a few close clients given CIT was an
U.S. stock and personal account idea.
What I got wrong:
My worst performer is Lenovo. I had high hopes for LePhone and LePad. I thought Lenovo
would follow the same path as Samsung and Sony, transforming from a commodities-type
company into a consumer branded company. While I believe they will gain market share and
operating leverage, one of the fears of Lenovo’s chairman is if Apple enters China. Apple did that
last year.
I care about your performance and take my fiduciary responsibility to you seriously.
Thank you for your business in 2010.
Yours faithfully,
Tony K. Lew
Associate Director
Institutional Asian Equity Sales
Standard Chartered Securities (N.A.) Inc.
Phone: +1 646 845 1316
Email: tony.lew@sc.com