|Bloomberg: Ex-Oasis Analyst’s China Hedge Fund Gains 8.6% in July||
(Bloomberg) -- Petrel Capital Management, the hedge fund started by former Oasis Management Co. analyst Rawen Huang, gained 8.6 percent in its Greater China Fund in July, the best month since it started in November 2015, according to a letter to investors seen by Bloomberg.
The Hong Kong-based firm’s long-short equity strategy, which invests primarily in small cap, Hong Kong-listed Chinese companies is up 23.2 percent so far in 2017, the letter said.
In July, the fund benefited from an investment in Plover Bay Technologies Ltd., which surged 72 percent on the month. Petrel bought Plover Bay shares at HK$0.82, and sold its stake when the stock reached HK$1.64, for a 100 percent gain, the letter said.
The fund also added new positions last month, buying Hang Seng Index put options expiring in December, on expectations that Hong Kong’s stocks may be set for a pullback.
The fund’s largest stock shorts are Li & Fung Ltd., and Vinda International Holdings Ltd., according to the letter. The largest long positions are Ten Pao Group Holdings Ltd., Logan Property Holdings Co., and China Meidong Auto Holdings Ltd.
Huang founded Petrel Capital in 2015 with a seed investment from Oasis chief investment officer Seth Fischer.