Tue, Jun 19, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Martin Currie shuts down China Hedge Fund after being hit with $14m fine

Wednesday, December 12, 2012

From Komfie Manalo, Opalesque Asia – International equity specialists Martin Currie is closing down its long/short equity strategy China Hedge Fund after the firm was slapped with a $14m fine from U.S. and UK regulators for favoring one client over another.

A spokeswoman from the $7.4bn UK asset manager told AsianInvestor that the closure of the China-focused hedge fund after 10 years, marks the end of the once-profitable strategy. The fund has been operating with less than $10m in assets and its liquidation is currently underway.

In August this year, the U.S. SEC fined Martin Currie $8.3m and the UK’s Financial Services Authority slapped another $5.6m fine on the firm for causing a U.S. publicly-traded advisory client, The China Fund, Inc., to make an unfavorable investment in bonds in order to prop-up another advisory client, the Martin Currie China Hedge Fund.

Data showed that the hedge fund bought $10m of illiquid bonds issued by Hong Kong-based Jackin International. The China Hedge Fund got into trouble during the financial crisis when it faced an increase in redemption requests from investors, while, simultaneously, Jackin became unable to service the bonds. To a......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. North America - George Soros: 'Everything that could go wrong has gone wrong'[more]

    From Marketwatch.com: George Soros, tell us how you really feel. 'Everything that could go wrong has gone wrong. [Trump] is willing to destroy the world.' The 87-year-old billionaire clearly isn't shy about expressing his generally liberal views and distaste for Trump's "America First" platform,

  2. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  3. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  4. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  5. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv