Hong Kong manager launches emerging hedge fund program

Alvin Fan

A Hong Kong-based asset manager that runs a hedge fund platform is launching a funding program for emerging managers, confident that flows will return to China's fund industry.

OP Investment Management Ltd (OPIM) plans to invest up to US$250m in emerging managers on its hedge fund platform, in association with the Oriental Patron Financial Group (OPFG).

OPIM, a licensed asset management company founded in 2004, is a member of OPFG, a Hong Kong-based independent financial services group founded in 1993. In cooperation with a consortium of regional hedge fund advisors and allocators, OPIM will raise capital to participate into early stage regional emerging managers who have built their track record on the OPIM platform.

The OPIM and OPFG funding program "will start with a fund of funds structure seeded by OPFG and partners targeting around $70m. OPFG will provide capital to the fund of funds structure and introduce potential investors to funds on OPIM's platform," an OPIM spokesperson told Opalesque.

The firm will target sovereign and corporate investors in PRC (People's Republic of China) first. Consortium partners will also raise capital locally in Hong Kong and through traditional markets like Switzerland, Europe, and maybe the US (tax exempt institutions), she added.

OPIM will choose from any Asia-based managers across all strategies, but with a focus on onshore PRC managers looking to expand offshore. Alvin Fan, chief executive officer of OPIM, believes the China-focused asset management industry is at the doorstep of a renaissance period: "Sure, PRC saw massive outflows in 2015, and yes, regulation has accelerated as a result, driving investors and managers into the global space. At the same time, we'r......................

To view our full article please login

This article was published in Opalesque's New Managers a top-down monthly analysis, news and research publication on the global emerging manager space.