Dr. Tan Chong Koay was a keen follower of investment gurus like Warren Buffet, Peter Lynch and John Templeton. While learning from them, he crafted his own successful investment strategy and philosophy that he feels is suited to the Asian markets, which tend to be more volatile than the developed markets. He believes that while value investing should be the underpinning of his investment strategy, it would be appropriate, even necessary, to complement it with a strategy of adjusting equity exposures taking into account the assessment of the state of the market. Dr. Tan made his first big break in 1987. Before the big crash in October 1987, Dr. Tan judged that the market was heavily over-valued and had been selling most of the stocks in his funds’ portfolio. When the crash came on 19 October 1987, causing stock prices to plunge, he immediately bought back good stocks at a fraction of their pre-crash prices. Funds under his management performed very well, and Dr. Tan was voted Malaysia’s top fund manager for the Malaysia Retirement Fund in 1987. This success confirms Dr. Tan’s value investing strategy.
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