The former head of The Children’s Investment Fund Management’s Asian efforts has raised US$100 million for his own hedge fund.
John Ho launched Janchor Partners’ maiden fund in January with $40 million, most of it from U.S. institutional investors. The Hong Kong-based fund has since grown to US$100 million, helped by its 9.9% return through the first six months of the year.
The Janchor Pan Asian Fund is a research-heavy equity long/short vehicle, focusing on markets across the Asia-Pacific region, Bloomberg News reports. Some 90% of the fund will be invested in its top 20 stock picks, generally companies with good management and business plans involved in industries with high entry barriers.
Despite Ho’s pedigree—he was TCI’s pointman for that firm’s bitter activist battle against Japan’s largest electricity wholesaler, Electric Power Development Co.—Janchor will not be an activist. Most of the fund’s first-half profits came from its long book, with 40% coming from its short-book, which the firm uses to generate alpha rather than simply to hedge.
Ho left TCI last summer, and is joined by four other veterans of the London-based activist shop at his new venture.
The Janchor fund is unusual in that most of its money—more than 90%—is subject to a three-year lock-up. Ho told Bloomberg that the lock-up was necessary because the fund wants “long-term capital because we want to focus on doing longer-term investing.”
In exchange, Janchor charges only 1.6% for management—a figure that could shrink as the fund grows—and 16% for performance, the latter fee paid out over three years and subject to a clawback if the fund loses money.