Singapore Hedge Fund Shop Dumps China

Feb 2 2010 | 10:01am ET

China may be one of the fastest-growing regions in the hedge fund industry, but that isn’t stopping one Asian hedge fund consultancy and advisory from washing its hands of the country.

Singapore-based GFIA has stopped covering and investing in hedge funds based in mainland China. In its monthly report, the firm said it believes “there is no internalized culture of business or fiduciary ethic in the People’s Republic of China.”

“For the time being,” the report added, “we doubt this will change.”

The move ends more than five years of hedge fund research in China for GFIA, which has also sold or redeemed all of its investments with mainland hedge fund managers, Bloomberg News reports. At their peak, GFIA’s China funds managed $3 million, or 10% of its total portfolio, according to principal Peter Douglas.

Douglas said his firm has moved its focus to Hong Kong-based hedge fund managers with experience outside of Asia. He added that the firm currently favors managers in more transparent regions, such as India and Latin America, particularly Brazil.

“A hedge fund is really all about the people behind it, and less about where the firm is, the structure, and all the rest of it,” Douglas told Bloomberg. “The problem is there is no deep culture of openness and transparency in China. If you’re running a more qualitative risk-management approach, you really need a breadth of qualitative information.”


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Futures Trending

FINalternatives Most Popular

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.