Hedge Fund Manager To Launch Multi-Strategy China Fund

HedgeCo.net – UG Investment Advisers, a hedge fund manager with over $500 million invested in China’s Qualified Foreign Institutional Investor program, has announced that they are looking to raise$200, to $500 million more for the launch of a Greater China multi-strategy hedge fund, a senior executive with the firm said in a Reuters interview.

UG Investment Advisers has six main hedge fund vehicles, including the UG Formosa Patriot Fund, UG Formosa Multi-Strategy Fund, UG Great Wall Hidden Value Fund, UG-Adwell Great Wall Absolute ReturnFund, UG Hidden Dragon Balance Fund and UG Hidden Dragon Undervalued Assets Fund. The new vehicle’s strategies would include looking for arbitrage opportunities in closed-end funds listed in mainlandChina, said Richard Fan, a partner and director with the $900 million hedge fund manager.

“It’s in the very preliminary stages right now. If it does proceed and go forward it will probably launch in the next three months or so,” he told the Reuters Hedge Funds and Private Equity Summit inSingapore. Fan said UG wants to launch a new multistrategy fund because the Formosa vehicle is currently about 70 percent invested in Taiwan, and the firm wants the flexibility to put a greaterpercentage of assets to work in mainland China.

The new fund would be focused on investing in China’s more than 50 closed-end funds, which typically list on an exchange and trade like stocks. While Asia-focused hedge fund assets have risensix-fold over the past five years, rising more than 30 percent last year alone, Fan said UG is not overly concerned about competition when it comes to closed-end fund arbitrage strategy in China.

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]