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OPIM partners with Mingshi to launch its first quantitative A-share hedge fund offshore

Friday, April 17, 2020
Opalesque Industry Update - OP Investment Management Limited (OPIM), Asia's leading fund platform, is partnering with Shanghai Mingshi Investment Management (Mingshi) to launch Mingshi China Optima Master Fund and two feeder funds which invest all of assets into the Master Fund and operates for the benefits of U.S. tax-exempt investors and other non-U.S. eligible investors.

The Fund's strategy is to actively manage long and short equities listed in mainland China but accessed through market access products issued by QFIIs/RQFIIs. The team incorporates proprietary factor models and quantitative research techniques targeting absolute returns based on years of track record of a similar profile onshore.

Founded in 2010, Mingshi is one of the most experienced quantitative firms with a strong research and development team in Shanghai, China - combining China A-share expertise with global best practices in asset management. Leveraging its deep bench with modern quantitative technology, Mingshi's approach to market-neutral strategies will be applied to its first offshore strategy managed under OPIM in Hong Kong.

"The China-A share opportunity set is as volatile as it is tremendous, so it's only natural we're seeing a spiked demand for effective long-short strategies; that not only generate significant alpha, but more importantly, protect it. A lot of players talk about the idiosyncratic China factors, but only a handful of managers have successfully brought this concept offshore." Alvin Fan, Chief Executive Officer of OPIM commented, "Mingshi's team is rare, because they've an outstanding multi-year track record built by a robust R&D team that you'd find in only a handful of shops globally. Given the limited number of successful offshore peers, Mingshi's Optima is arguably China's most important launch of 2020."

Profession Yuan Yu, Co-Founder and Head of Strategy of Mingshi, commented: "We've been working closely with OPIM over the last year in preparation of this launch, and we're intensely focused on ensuring the same institutional grade product offshore as we have onshore. We couldn't be more thrilled to help allocators globally finally build actively-managed exposure to systematic alpha in China's A-share market."

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