"True leadership is about guiding others to success, ensuring everyone performs at their best, and making the journey worthwhile", said Bill Owens. This quote aptly encapsulates the leadership philosophy of Yu Chuan (YC) Lee, a seasoned investment professional with over two decades of experience in fund management, specializing in crafting stable, long-term portfolios. His career began in 1997 as an analyst at UOB Asset Management, focusing on Greater China during volatile financial times, including the Asian Financial Crisis. He later moved to Hong Kong with ABN Amro Asia, covering North Asian markets, and in 2004 co-founded LAPP Capital, a hedge fund that manages about $2 billion at its peak across three funds and global offices. After selling LAPP in 2013, Lee diversified into private equity, real estate, bonds, and venture capital, becoming an early adopter of SPACs. He went on to help manage 2 large single-family offices both in Hong Kong and Singapore.
In 2023, Lee founded the Best of the Best (BotB) Core Fund and in 2024 joined Infinity Asset Management, a multi-family office based in Hong Kong. Infinity is a distinguished provider of family office services, specializing in tailored solutions that cater to the unique needs of high-net-worth individuals and families. BotB offers a refreshing approach focused on compounding returns and peace of mind, appealing to high-net-worth individuals and family offices worldwide by investing in globally recognized, time-tested companies.
Embarking in an engaging interaction with CEO Insights Asia magazine, Lee shares his strategies, future roadmap, and much more. Let’s delve into it.
What inspired you to create a portfolio focused on stability and proven success across market cycles?
The portfolio was inspired by the difficulties that many investors encountered towards the end of the market cycle of 2022. Running up to 2022, Technology, biotech, Artificial Intelligence, high-yield bonds, and other investments captivated high net worth individuals, family offices, and even seasoned professionals. Many were left scratching their heads in 2022 when these assets crashed as the cycle turned. Navigating turns in any cycle is always extremely challenging.
This BotB portfolio was my solution, providing stability and clarity to promote peace of mind.
"My goal is to provide a stable, reliable solution for those seeking sustainable success over the long term"
What key factors guide your investment strategies and policies to align with business goals?
Our investment philosophy is anchored around a golden rule "If a company grows its profits, then its shareholder must benefit too". This straightforward approach serves as our guiding compass for all investment decisions. We focus on identifying companies that demonstrate sustainable earnings growth, as historical data consistently shows a strong correlation between long-term stock performance and earnings growth.
This correlation is particularly evident in established markets like the S&P 500, where stock prices have historically tracked earnings per share (EPS) growth over extended periods. However, we deliberately avoid markets where this relationship breaks down, such as in China and other emerging markets. In these regions, stock movements are often driven more by sentiment shifts and policy changes rather than fundamental earnings growth, making them unsuitable for our long-term, profit-focused investment strategy. This disciplined approach helps us maintain clarity and consistency in our investment decisions while avoiding markets where unpredictability could compromise our core investment principles.
How would you describe your leadership approach and the principles you follow?
My leadership philosophy is built on three core pillars, namely consistency, discipline, and simplicity. At the heart of this approach is a commitment to rigorous testing of our investment framework across multiple economic cycles and market conditions. We believe that true business excellence reveals itself over time, as companies and their management teams prove their ability to navigate various challenges while maintaining adherence to our fundamental "Golden Rule" of sustainable profit growth. This time-tested approach allows us to evaluate both the resilience of business models and the effectiveness of management teams across different eras. By maintaining unwavering discipline in following these principles, we create a stable and reliable foundation for long-term success.
How do you stay updated on industry trends to ensure your organization remains future-ready?
I don’t think there is a magic formula. I do attend conferences, regularly examine market cycles, earnings reports, and macroeconomic data. I think sometimes, taking a step back, and looking at the whole picture and sometimes going back in time as examine how markets behaved in different periods can give us some clues to how it may behave in the future.
What is the ultimate vision or goal you are striving to achieve?
The ultimate vision I strive to achieve is to establish the BotB portfolio as a core, foundational position in any investor’s portfolio. This portfolio is deliberately constructed without exposure to banks, commodities, cyclical companies, the Magnificent 7, or Chinese and emerging market companies. Its purpose is to be a core position in anyone’s portfolio and remain untouched, allowing it to compound steadily over time. In contrast, positions outside the core are treated as tactical trades, as they are more susceptible to the various market cycles we face.
My long-term goal is to provide a high net worth individuals and family offices with a simple, time-tested investment philosophy that prioritizes peace of mind and consistent returns. I have seen too many investors suffer losses from speculative industries like biotechnology or artificial intelligence, or become overwhelmed by complex strategies they didn’t fully understand. My mission is to shift the focus away from chasing trends and toward fostering long-term stability, trust, and financial security.
Yu Chuan Lee, CIO – Equities, Infinity Asset Management
Yu Chuan Lee is a seasoned investment professional with over 25 years of expertise in fund management and portfolio creation. He co-founded LAPP Capital, managing about $2 billion at its peak, and later diversified into private equity, real estate, and SPACs. In 2023, he launched the Best of the Best (BotB) Core Fund, focusing on stable, long-term investments in globally recognized, time-tested companies.
Hobbies: Skiing, playing golf, home barista and tennis
Favorite Cuisine: Local food, Michelin meals, home-cooked food
Favorite Book: Market Wizards, Principles, and The Inner Game of Tennis
Favorite Travel Destination: Japan, China