Tue, Jan 17, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Asia Pacific Intelligence

Shanghai-based China focussed firm benefits from private equity

Monday, October 29, 2012

Earl Yen

Earl Yen is the founder of CSV Capital Partners, a China-focused alternative investment firm, based in Shanghai. CSV was

formed in 2004 and currently manages approximately $56 million in total AUM, of which 30% is from the founders/management.

The firm has two China funds, a private equity fund which has been running since 2007 with $45m under management and an equity long/short hedge fund, seeded with the founders' capital and launched at the beginning of 2010, now with assets of $11 million.

In an interview with Asia Pacific Intelligence, Yen says: "We trade mostly US and Hong Kong listed China stocks". Investors in the private equity fund are largely from North America, Japan and the rest of Asia, while the hedge fund's assets come 60% from the management team's own capital and the balance from investors in Europe and Asia.

"We manage a China focussed long/short equity fund and I think our roots in private equity have given us more of a deep research based, fundamental approach to reviewing Chinese companies. We do extensive local on-the-ground due diligence research and we have been doing it a long time in obscure private companies in China" Yen says.

"We have certain advantages compared with global funds that try to invest in Chinese companies without an on-the-ground team to do local reference checks and who can spot trends, frauds and new opportunities at an early stage."

Yen and his team prefer mid-cap Chinese companies listed in the US and Hong Kong and many of them are there because of previous private equity investments. "We tend to prefer mid-cap companies or smaller because these are the most under researched companies and they offer a lot of valuation inefficiencies."

Yen believes that the firm's "sweet spot" is under-researched small-cap and mid-cap equities, with a strong preference for faster-growing Chinese private sector companies selling to the domestic China market.

he firm has 14 full-time investment professionals in China. Since launch, the CSV hedge fund has outperformed the China equity indices, appreciating by 12.3% (net of all fees and expenses) during 2010, by another 3.5% in 2011 (the various China equity indices were down 20-30% in that year), and by 7.8% year to date through September 2012.

 
This article was published in Opalesque's Asia Pacific Intelligence our monthly research update on alternative investments in the Asia-Pacific region.
Asia Pacific Intelligence
Asia Pacific Intelligence
Asia Pacific Intelligence
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. Southpoint Capital gains 3.8% in Q3, bringing year-to-date returns to 5.2%[more]

    From Valuewalk.com: Southpoint Capital Advisors, the $3 billion New York hedge fund founded by former employees of David Einhorn’s Greenlight Capital, added 3.8% net during the third quarter of 2016, bringing year-to-date returns to 5.2% and cumulative returns since inception (July 2004) of 237.4% a

  2. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  3. Hedge funds gain across strategies in December, outperform MSCI to close at record index level in 2016[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted gains across all strategies in December to conclude 2016, with the HFRI Fund Weighted Composite Index (FWC) rising to a record index value level as oil prices surged, equities gained and U.S. interest rates increased into year end, accordin

  4. Performance - BlackRock's robot stock-pickers post record losses, Soros-backed fund Glen Point loses in first trading year, Regal Funds Management: Bleak year as returns in key funds plunge 25pc, Elm Ridge Capital up 25% in 2016[more]

    BlackRock's robot stock-pickers post record losses From Bloomberg.com: Like so many fund titans these days, Laurence D. Fink is betting on machines to turn around BlackRock Inc.'s beleaguered stock-picking business. Trouble is, they just might have made things worse. BlackRock

  5. Eurekahedge Hedge Fund Index up 1.01% in December (+4.48% YTD)[more]

    Hedge funds gained 1.01% during the month of December, with 2016 returns coming in at 4.48%. Meanwhile, underlying markets as represented by the MSCI AC World Index (Local) gained 2.38% in December with its 2016 returns coming in at 7.37%. North American equity markets traded higher in December as t