Thu, Jun 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

China’s prototype sunshine hedge funds in peril

Thursday, December 20, 2012

From Precy Dumlao, Opalesque Asia – A thick cloud shrouds China’s prototype hedge funds, or so-called sunshine funds after seeing record liquidations this year, reported AsianInvestor.net.

However, insiders believe that the estimated 1,800 sunshine funds across China could rebound next year, benefiting from fresh regulations Beijing is set to implement in 2013. According to the report, the new regulations will bring flexibility in investment strategy compared to mutual funds because they will not be required to invest 60% of their portfolio in equity strategies and also allow such funds to raise their cash positions to evade risk.

Although the sunshine fund serves as a prototype of China’s hedge fund space, their remit is very limited, including the strategies they can use. The sunshine funds are not allowed to use strategies such as long/short and market neutral.

The limited strategy makes such funds vulnerable to volatile markets. Year-to-date, sunshine fund liquidations totaled 117 compared to 111 from 2011. Most of the liquidations are a result of poor performance, it was reported.

The report quoted Long Fang, managing director of West Brothers Fund Manager Research Centre as saying, "Sunshine funds beat the market in two ways: good stock-picking that can beat the benchmark, and good timing which can ease downside risk. These help the......................

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. 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

  2. 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

  3. 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

  4. 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

  5. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp