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Lyxor AM and Martin Currie launch Lyxor / Martin Currie China Dragon Fund on Lyxor’s Hedge Fund Managed Account Platform

Friday, April 30, 2010
Opalesque Industry Update - Another best-in-class manager has been added on Lyxor’s managed account platform as Lyxor and Martin Currie launch the Lyxor / Martin Currie China Dragon Fund Ltd.

The fund is a totally new non-benchmarked Long/Short strategy based on unique management and available exclusively through Lyxor and Martin Currie.

Martin Currie manages US$ 4.7 billion in dedicated Greater China strategies, and is one of the largest international investors in the domestic Chinese A-share market. The company has a China team of 13 analysts and portfolio managers based in Edinburgh and Shanghai. It has a heavy emphasis on bottom-up research, visiting over 1,000 companies in China each year. The fund will leverage on this strong proprietary research, particularly the Shanghai based research team, founded in 1997.

The fund’s manager, James Chong, has over 15 years of investment experience and currently manages over US $400 million across China multi-cap products, delivering significant outperformance.

Allan MacLeod, managing director of sales, marketing and client services at Martin Currie said: “The fund has run as a model portfolio since February 2008 returning 12.6%. The fund has protected capital, generated alpha and delivered the returns with around one-third of the volatility of the market – all things it aims to achieve.

We have a long and successful relationship of working with Lyxor. Our collaboration started in 2002 with the launch of the Lyxor / Martin Currie Japan AR Fund, and was followed by the Lyxor / Martin Currie Global Resources Fund. We are delighted that the China Dragon fund is joining this suite.”


The Fund is a long/short equity program investing in Greater China (China, Hong Kong and Taiwan) with a multi-capitalization focus. Thanks to proprietary research and the interaction between the Martin Currie’s Asian teams in Edinburgh and Shanghai, the Fund manager will use primarily a bottom-up approach, using local knowledge to capitalise on Chinese market inefficiencies. A strong emphasis is placed on company visits and financial analysis. The manager will also work on a topdown overlay to take into account China's policy and regulatory risks.

With over $ 10 Bn in assets under management (as of March 31st, 2010) and 115 managed accounts, the Lyxor platform is today the world’s largest by all metrics and seeks to provide its clients with the best and most diversified universe for hedge fund investing. It was recently named ‘Best Managed Account Platform’ at the 2010 Annual Hedgeweek Awards.

Source.


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