Addax Launches China-Focused Fund Of Hedge Funds

May 1 2007 | 3:03pm ET

Paris and Chicago-based Addax Capital Management recently launched a China-focused fund of hedge funds dubbed the Zhong Guo Fund. The fund, which means middle kingdom in Chinese, launched on Jan. 1 with €5 million and is up 8.04% through March.

The Zhong Guo Fund currently invests in nine underlying managers mainly employing long/short strategies, and will increase its portfolio to 12 funds in the near term.

The fund’s underlying managers are Western-educated Chinese nationals based in either Hong Kong or Singapore with research offices in China, according to Addax chief executive Jean-Jacques Joule. The underlying managers each handle between $20 million and $700 million in assets.

“I think we have a good story and what I tell investors is that they cannot ignore China, and the best way to play in China is through a fund of funds because I do think it is dangerous to be benchmarked,” said Joule.

“The A-shares market is an opportunity market and you have to be able to enter and leave very quickly,” he said. “The B-shares market is very specific and you have to have good knowledge, but there are some interesting things to do there.” 

The new offering, which is currently marketed to French institutional investors including pension funds and insurance companies, charges fees of 2% for management and 10% for performance.

The firm is also opening an office in Singapore to further source Asian managers and operations there should commence within the next few months. 
 
Addax spun out of Credit Agricole in 2004 and currently manages €160 million in four other funds.


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

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

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

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.