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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

The London Whale saga is a twist on the typical rogue trader story as the rogue trader recognized the error of his ways and was prepared to take his medicine but was instructed by superiors to “defe...

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.