Cheah Cheng Hye is a renowned name in the investment and asset management industry. As the founder and Chairman of Value Partners Group, one of Asia’s largest independent asset management firms, Cheah has built a reputation for his visionary approach to investment and his commitment to long-term value creation. His entrepreneurial journey is a story of perseverance, strategic thinking, and an unwavering belief in the power of value investing. Through Value Partners, Cheah has not only transformed the landscape of investment management but has also contributed significantly to the development of Asia’s financial markets.
In this blog, we will explore Cheah Cheng Hye’s entrepreneurial journey, his educational background, business background, the struggles he faced, his successes, and his impact on the financial industry through Value Partners Group.
Early Life and Educational Background
Cheah Cheng Hye’s journey to success began in Malaysia, where he was born and raised. From an early age, Cheah exhibited a strong aptitude for academics, particularly in the fields of mathematics and economics. His intellectual curiosity and passion for finance led him to pursue higher education in the United States.
Cheah attended Harvard University, one of the most prestigious universities in the world, where he earned a Bachelor’s degree in Economics. During his time at Harvard, he developed a deep interest in finance, particularly in investment analysis and capital markets. It was at Harvard that Cheah’s passion for value investing took shape—a philosophy that would later become the cornerstone of his career and the foundation for Value Partners.
Early Career and the Birth of Value Partners
After completing his education, Cheah Cheng Hye began his professional career in the United States, gaining valuable experience in the finance and investment industry. However, he soon realized that his long-term goals were better aligned with creating his own investment firm that could leverage his unique approach to value investing.
In the early 1990s, Cheah made the bold decision to return to Hong Kong, a financial hub in Asia, where he could take advantage of the region’s growing markets and investment opportunities. In 1993, he co-founded Value Partners Group along with his partners, a firm that would go on to become one of Asia’s leading asset management companies.
The Value Investing Philosophy
From the outset, Cheah Cheng Hye’s investment philosophy was centered around the principles of value investing, an approach popularized by legendary investors like Benjamin Graham and Warren Buffett. The idea behind value investing is to find undervalued stocks—investing in companies that are trading below their intrinsic value, with the expectation that the market will eventually recognize their true worth.
Cheah’s firm, Value Partners, was built on the idea that patience and disciplined research could yield long-term returns for investors. The firm focused on identifying quality companies in Asia with strong fundamentals, competent management, and a competitive edge in their respective industries. The strategy was not about short-term market trends but rather about finding stocks that had strong growth potential over the long run, regardless of market fluctuations.
The company’s first major success came with the launch of its flagship Value Partners Classic Fund in 1993. This fund quickly gained traction among investors due to its strong performance, which was a result of Cheah’s disciplined value-investing approach. Over time, Value Partners expanded its portfolio and diversified its investment offerings, attracting both retail and institutional investors.
Struggles and Challenges
As with any entrepreneurial journey, Cheah Cheng Hye and Value Partners faced their share of struggles and challenges, particularly in the early years. Starting a business in a competitive and highly regulated industry like asset management is never easy. Some of the significant challenges that Cheah and his team faced included:
- Building Credibility: In the beginning, Cheah’s firm had to establish its reputation in a crowded market. As a newcomer in the asset management industry, Value Partners had to convince investors of its ability to deliver strong returns through its unique value-investing strategy. Building trust in a competitive market took time and required consistent performance.
- Navigating Market Volatility: The global financial markets, particularly in Asia, were often volatile, and Cheah had to navigate through several economic crises, including the Asian Financial Crisis of 1997. While many other investment firms struggled during this time, Cheah’s long-term value investing approach allowed Value Partners to weather the storm and emerge stronger.
- Expanding the Business: As the firm grew, so did the challenges of managing a larger portfolio of assets. Value Partners had to find new ways to scale its operations, attract top talent, and manage a more diverse set of clients. This required significant strategic planning, investments in technology, and continuous adaptation to changing market conditions.
Despite these hurdles, Cheah’s perseverance, commitment to value investing, and his team’s dedication allowed Value Partners to overcome the challenges and establish itself as a leading player in Asia’s asset management industry.
Successes and Achievements
Cheah Cheng Hye’s entrepreneurial vision and leadership have resulted in several significant successes, both for Value Partners and for himself personally. Some of the notable achievements include:
- Value Partners’ Rapid Growth: Under Cheah’s leadership, Value Partners expanded significantly, becoming one of the largest independent asset management firms in Asia. The company’s assets under management (AUM) grew to billions of dollars, with a diverse portfolio of funds across different asset classes, including equities, fixed income, and private equity.
- Strong Investment Performance: Value Partners has consistently outperformed many of its competitors, delivering strong returns for its clients. The firm’s Value Partners Classic Fund, in particular, has been widely recognized for its exceptional long-term performance, solidifying Cheah’s reputation as a skilled and disciplined investor.
- IPO and Public Listing: In 2007, Value Partners took a significant step by listing its shares on the Hong Kong Stock Exchange, making it a publicly traded company. The IPO was a success and allowed the firm to raise additional capital to expand its operations, further solidifying its presence in the Asian market.
- Recognition and Awards: Cheah Cheng Hye and Value Partners have received numerous industry accolades and awards over the years. These include recognition for excellence in asset management, leadership, and long-term investment performance. Cheah himself has become a highly regarded figure in the global investment community, known for his strategic insights and unwavering commitment to value investing.
Impact on the Industry and Legacy
Cheah Cheng Hye’s impact on the financial and asset management industry is profound. Through Value Partners, Cheah has played a key role in transforming the way investment firms approach value investing in Asia. His philosophy of focusing on long-term value, conducting rigorous research, and remaining disciplined in the face of market volatility has become a model for other firms in the region.
Beyond his business achievements, Cheah is also known for his philanthropic efforts, particularly in education and community development. He has supported various causes, including scholarships, entrepreneurship, and initiatives that promote financial literacy.
Cheah’s legacy is one of perseverance, discipline, and a commitment to sustainable investment practices. He has built a company that not only delivers strong financial returns but also contributes to the development of the broader financial ecosystem in Asia. His work has inspired countless investors and entrepreneurs to think long-term and adopt a patient, research-driven approach to investment.
Conclusion
Cheah Cheng Hye’s entrepreneurial journey is a testament to the power of vision, persistence, and long-term thinking. From founding Value Partners to becoming a leading figure in Asia’s asset management industry, Cheah has achieved remarkable success through his commitment to value investing and a disciplined approach to investment management. His legacy will continue to influence the world of finance for years to come, as his firm and investment philosophy remain a model for future generations of investors and entrepreneurs.
