|AsiaHedge: OPIM, Legend Arb Join Forces to Launch Iron Ore-focused Vehicle||
Hong Kong-based platform OP Investment Management (OPIM) and Legend Arb Asset Management (Cayman) Limited are teaming up to launch a statistical arbitrage fund focused on iron ore in June.
The new fund will invest in large-cap Chinese A and H-shares in Hong Kong besides trading iron ore-related equities and futures. As a commodity, iron ore has gained strongly in recent years thanks to the construction boom in China, but since April has suffered a sharp downturn.
The managers said the new fund Legend Arb CT Equity Fund aims to generate stable returns with low volatility by deploying a long/short strategy focused on iron ore and a market-neutral strategy that trades both in equities and futures.