|Fund Selector Asia: Mainland hedge fund managers target Hong Kong||
OP Investment Management (OPIM) runs an infrastructure platform in Hong Kong which the company says lowers the capital bar for a hedge fund to break even. "It’s the [onshore] investors who have become sophisticated and asked for US dollar- denominated assets for diversification," OPIM CEO Alvin Fan told FSA.
One newcomer is Beijing Shenzhoumu Investment Fund Management, a private investment fund (non-retail) manager which has RMB 7bn ($1.04bn) in assets under management. The firm plans a Hong Kong launch of a multi-strategy globally-focused product, which mainly invests in US and Asian equities. However, it will be managed out of Beijing. Zhou Yuguang, the firm's global head of trading, said the aim is to raise around $20m.
He sees high demand coming from investors in big cities of eastern regions, such as Shanghai and Beijing. “They are not familiar with overseas products, but we, as a mainland fund manager, can communicate more easily with them.”