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Pictet Asset Management expands total return range

Monday, July 31, 2023
Opalesque Industry Update - Pictet Asset Management has expanded its USD 9 bn actively managed Total Return franchise with the launch of the Lotus Offshore Fund Ltd., an event driven special situations Asia Long/Short equity fund. The fund is offered as a quarterly-dealing Cayman-domiciled strategy.

Lotus Offshore Fund Ltd. seeks to capture the distinctive opportunity in Pan-Asian equities. This includes short to medium-term corporate catalysts, and longer-term themes such as the improving corporate governance in Japan, the growth of South East Asia leading to increased corporate activity as well as capital markets reforms in China improving its attractivity.

The strategy invests in four areas: defined catalysts (equity capital market trades, thematic, special situations); announced M&A; pre-event (positioning ahead of an M&A, divestment/spin-off); and Pre-IPO. This diversification helps to provide stable, all-weather results in a region defined by dynamic but often dislocated markets. These market conditions create unique opportunities to generate alpha outside of a traditional long-only approach.

The strategy aims for consistent, uncorrelated returns with limited volatility throughout the cycle. It is focused on disciplined risk management and rigorous analysis of companies and situations.

Jon Withaar, Head of Asia Special Situations, explains "Asia is a great source of alpha due to its size, diversity and less-crowded opportunity set. Opportunity and risk often come hand-in-hand however, so we are adopting a well-diversified and cautious in-vestment approach."

The Lotus Offshore Fund Ltd. is managed by an experienced team of three led by Jon, and benefits from the resources of one of Eu-rope's leading hedge fund managers. Based in Singapore, Jon has 20+ years' experience in Asian financial markets, producing posi-tive returns in challenging periods including 2001, 2007-2008, 2015 and 2020. He is joined by Shawn Ban, Analyst and Jeremy Thia, Analyst.

The Lotus Offshore Fund Ltd. is the latest addition to Pictet AM's Total Return fund range. Market neutral funds in this range are Agora (European equity) and Alphanatics (multi-strategy). Also in the range is the equity long/short directional fund, Mandarin (Chi-na equities) as well as the Alt-Distressed & Special Situations fund (event driven).

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