Mon, Aug 3, 2015
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. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  2. Activist News - Celgene says patent-fighting hedge fund manager wants to short its shares[more]

    From Reuters.com: Celgene Corp, one of the world's largest biotechnology companies, has accused U.S. hedge fund manager Kyle Bass of attempting to profit from his attempts to wipe out several major drug patents through his Coalition for Affordable Drugs. The company asked the U.S. Patent and T

  3. Einhorn's Greenlight Capital hedge fund slumps 6.1 percent in July[more]

    From Reuters/Thefiscaltimes.com: Hedge fund mogul David Einhorn's Greenlight Capital slumped 6.1 percent in July and is now down 9 percent for the year after gold, one of the fund's top holdings, tumbled to five-year lows last week. Greenlight notified clients of its returns late on Friday, ac

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

banner