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Bailey McCann, Opalesque New York: Hong Kong-based MegaTrust Investments is launching a new offshore fund. The fund will replicate the strategy of the firm's flagship fund Yangtze II, which invests in China A-Shares.
The target launch date for the Cayman fund - Yangtze IV - is mid-June 2017.
Through its Yangtze funds, MegaTrust Investments invests in China A-Shares using Hong Kong Stock Connect.
MegaTrust Investments is run by Charlie Chen and Qi Wang. Chen started to develop his Chinese equities strategy when he was at Fortis Bank, which launched the Yangtze Flexifund Equity China A SICAV in 2004. Chen was the portfolio manager for that fund until his departure in 2007 to start MegaTrust. Qi Wang was previously head of China Equity Research at MSCI. At MegaTrust, the two men expanded their equities approach to launch Yangtze II.
Yangtze Fund II has run since 2008, generating net return of 16 percent annually through March 2017. MegaTrust currently has approximately $500 million in assets under management trading in the Yangtze strategy.
In a recent investor letter obtained by Opalesque, Chen said that he expects to see consistent performance from large-cap blue-chip companies in China's A-share market as a result of recent structural changes to the market itself. Chen notes that while the A-shares market could see a pullback in the next few weeks or months, the growth trend in China is stable enough that performance should rebound over a...................... To view our full article Click here
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