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OTS Capital launches Pan-Asia long bias UCITS fund

Thursday, November 26, 2015
Opalesque Industry Update - OTS Capital Management Limited and ML Capital have launched the OTS Asia Opportunity UCITS Fund, a Pan-Asia long-biased strategy hosted on the MontLake UCITS Platform. MontLake is a leading independent platform for UCITS funds that provides investors with access to a range of liquid, transparent and regulated investment products domiciled in Ireland.

Hong Kong based OTS Capital is an exciting new fund manager, led by two highly-respected former Dalton PMs. Tony Hsu, Chief Investment Officer of OTS, and Yuya Shimizu, senior portfolio manager at OTS, were previously co-portfolio managers for Dalton's Asia strategy between 2008 and 2014. They, along with former DaltonSenior Analyst & Head of Research China, Ben Ting, founded OTS Capital last year.

OTS Capital seeks global investing opportunities with a focus on Asia, driven by research, analysis, disciplined capital preservation and risk management. OTS Capital's founding partners have lived and worked across key regions in Asia, and the team has over thirty years of combined investment experience through multiple market cycles. Leveraging their country-specific expertise and research, they apply a cross-border approach and value-investing disciplines to Asian equities in order to identify unique investment opportunities.

The OTS Asia Opportunity UCITS Fund is a Pan-Asian, fundamentally focused long/short equity fund seeking to preserve capital and maximize returns under a strict value investing discipline. OTS seeks to capitalize on certain themes in the Asian markets, which can be inefficient and volatile with limited sell-side coverage. The fund looks for alignment of interests, as motivated entrepreneurs with personal investments tend to outperform state-owned enterprises run by professional managers with trivial ownership stakes. The fund also takes advantage of the divergence in business quality between companies with strong fundamentals and competitive advantages, and those in industries with commodity economics and fragile business conditions.

Initial investment in the fund comes from Adamas Asset Management, an investment group that provides structured funding for growth enterprises in Greater China and developed markets across Asia.

Speaking today, Cyril Delamare, CEO of ML Capital, commented: "OTS Capital is an exciting up-and-coming manager backed by years of experience at an established industry heavyweight. We are delighted they have chosen MontLake to launch their UCITS Fund. Asia strategies are in high demand and we see the OTS Asia Opportunity UCITS Fund, and OTS Capital, as ones to watch for the future."

Tony Hsu of OTS Capital said: "We are delighted about the opportunity to work with ML Capital, combining our knowledge and experience in Asia with theirs in the UCITS space, and we look forward to a long and successful partnership."

Mark Hibbs of Adamas added: "We were attracted to the OTS Asia Opportunity Fund by the depth of experience on offer, thematic approach to investment in Asian markets and the focus on ensuring an alignment of interests. The philosophy is very much in line with our way of thinking. OTS is clearly one of the best of breed fund managers in Asia, so it was only natural that we sought first mover advantage in order to allocate on behalf of our investors."

What do you think?

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