Saturday, 28 March 2015
Last updated 18 hours ago
Mar 28 2007 | 4:01pm ET
David Yein, a former trader with Boston-based global long/short equity shop Delta Partners, on March 15 launched the Abacus Greater China Focus Fund, a China-focused long/short fund.
Accroding to Yein, the hedge fund is opportunistic and has very focused positions, most of which are not directly traded in the Chinese market but are either ADRs or shares listed in Hong Kong, Taiwan or Singapore. “When we get big enough, we’ll apply for QFII [qualified foreign institutional investor] to trade directly in the Shanghai Exchange,” said Yein, whose fund currently manages about $1.2 million.
Yein believes his ability to speak the language gives him a leg up. “Because I speak the language and have lived in Taiwan, I have a first-hand feel on these Chinese companies,” he said. “I actually go and try to visit these companies because it’s still a third-world country and there is plenty of fraud so there is plenty of opportunities to go long and short.”
For example, Yien said he recently shorted a Chinese company called Bodisen Biotech, which is listed on the American Stock Exchange as well as in London and Frankfurt. “Most people in China are still trying to feed themselves and they’re selling organic fertilizers. Are they telling us there is a market for organic foods in China?”
After raising significant capital, the company spent the money on buying another Chinese company called China Natural Gas. “They said natural gas was required during the production process for organic fertilizers but organic fertilizers actually produce natural gas,” Yien said.
The Abacus Fund charges fees of 2% for management and 20% for performance, with a $50,000 minimum investment requirement.
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…