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Alternative Market Briefing

High operational costs, poor performance force Hong Kong hedge fund to close shop

Monday, January 12, 2015

Komfie Manalo, Opalesque Asia:

After 14 years, Hong Kong-based HT Capital, founded by husband-and-wife tandem Ophelia Tong and Karl Hurst, said it is shutting down because of rising cost of operations and poor performance, reported Asian Investor.

The decision was announced by the long/short equity hedge fund on January 6 to its investors and administrator, HSBC. During its peak in 2010, HT Capital, which was founded in 1997, had managed at least $700.47m in assets.

However, the HT Asian Capital Catalyst Fund reported a $74.5m in assets under management as at end 31 December 2014, while the HT Asian Amoeba Fund had AUM of $95m and fell 1.56%. HT Capital said it would start returning investors money for Catalyst Fund on March 2 and Amoeba Fund will return money on April 1.

Hurst was quoted as telling his investors, "Ophelia and I made this very difficult decision after much consideration. 2014 was a challenging year for all Asian managers and whilst we managed to navigate our way through extremely volatile markets, our investment performance was lacklustre and redemptions were relentless."

He added that closing the fund was in the best interest of the fund’s investors because the high cost and poor performance make it impossible to continue operations.......................

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