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Alternative Market Briefing

Ka Shao Lee of Cavenaugh Capital - from coffee boy to CIO

Thursday, June 14, 2012

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Ka Shao Lee
Bailey McCann, Opalesque, New York:

Ka Shao Lee had an unique start to his career in hedge funds - his first exposure to trading was as a trader on the Asian trading floor for JP Morgan. When he applied for the position, he jokingly applied as a coffee boy - a move which caught the eye of management and showed his tenacity. As a new trader, he literally stood behind the others as they worked, fetching coffee and also learning on the job. Over time he moved through the ranks, and now serves as the Chief Investment Officer at Singapore-based Cavenagh Capital where he leverages his experience and background as a statistician to trade the Asian markets. Lee was recently interviewed by Matthias Knab for Opalesque TV.

He explains that many events within the Asian markets are mispriced. The discrepancy is the direct result of monetary policy in the region serving as more of a signaling tool than a pure policy. As such, managers like Lee are able to create derivative instruments that exploit these opportunities. Using his background as a statistician he examines the probabilities around market events and makes bets on their likely direction.

His firm has attracted seed capital from APG, the Dutch Civil Service Pension Fund and was originally headquartered in Amsterdam, but quickly realized that in order to be successful in the Asian markets, the firm had to be local and develop relationships ......................

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