|Bloomberg: Quant Hedge Fund in Asia Finds Opportunity in Iron Ore Sell-Off||
(Bloomberg) -- As mining stocks tumble and commodities from iron ore to oil sink toward lows not seen since last year, Legend Arb Asset Management’s Kace Lam sees an opportunity.
Lam, managing director of the investment unit of Hong Kong-based Legend Arb Trading Co., plans to start a quantitative hedge fund focusing on iron ore. The Legend Arb CT Equity Fund, set to open this month, will rely on mathematical models and fundamental analysis to make bets that take advantage of short-term price dislocations between iron ore futures and mining stocks in China, Australia and Brazil.
The Legend Arb fund will be launched via the fund platform at OP Investment Management, which provides startup managers with office space and infrastructure, and helps with choosing service providers such as lawyers and prime brokers. Hong Kong-based OPIM added 8 hedge funds to its platform in the first quarter of this year, after adding 18 funds in 2016, according to chief executive officer Alvin Fan.