Former Delta Trader Launches China-Focused L/S Fund

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.


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

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.