Kelusa Eyes US$200M For China Fund

Oct 6 2011 | 12:50pm ET

Kelusa Capital Group hopes to raise almost US$200 million for its China-focused hedge fund as its manager eyes a growing list of opportunities.

The two-year-old Kelusa Capital China fund currently manages about US$55 million, most of it in cash as fund manager Kenton Leo waits out the market volatility. But the fund hopes to grow to US$250 million as it plans to jump back into the markets within the next 18 to 24 months.

"Panic creates opportunities," Leo told Bloomberg News. "The list of stocks that I have today that are at all-time low valuations is growing daily as we speak because things are sold down indiscriminately." Among those are container shipping firms, ports and exporters.

"These companies are being hurt by a slowdown in China exports, but borderline bankruptcy is being put into these valuations," Leo said. "These will be an impact, but this entire sector is not going to go bankrupt."

Kelusa China is up over 7% this year despite a 1.7% setback last month.

Leo is targeting investors seeking low-volatility returns in all market environments. "We're very focused on thinking about picking companies that will underperform and outperform in the market, and constructing a portfolio where company fundamentals drive the fund performance, rather than big macro events."

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…