Hong Kong’s Segantii Fund Gains 29% YTD

Oct 18 2011 | 8:20am ET

A year that may be an annus horribilis for many hedge funds could be the best ever for the Hong Kong-based Segantii Asia-Pacific Equity Multi-strategy Fund, which has returned 29% through September.

The $292 million fund run by Hong Kong-based Segantii Capital Management gained 7.6% in July and 5.3% in September on its way to recording its best quarter ever, according to a newsletter to investors seen by Bloomberg.

Launched in December 2007, the fund has posted positive returns in every year since, including a 24% gain (its best to date) in 2008.

The Segantii fund doesn’t bet on general market directions and did well during the three months ending in September when the HFRI Fund-Weighted Composite Index posted its biggest quarterly decline since 2008 and the MSCI World Index shed 17%.

“Our blend of relative value and events enabled the fund to profit during the initially benign and subsequently volatile environment,” said the Segantii newsletter. “We approach year-end well prepared for a challenging and evolving investment landscape.”

Marketing documents cited by the news agency say the fund trades Asian—particularly North Asian—equities and equity-linked securities. Its relative-value strategy identifies and attempts to exploit pricing gaps between share classes of the same company, or shares listed on different exchanges or shares of two similar stocks.

According to the marketing documents, it also exploits the pricing effect of corporate events with well-defined catalysts and timelines.

“After an active July and a quiet August, activity picked up appreciably in September,” the newsletter said. “The distressed market conditions towards quarter end presented opportunities that we will look to realize in October.”


In Depth

Hedge Fund Selection: Sussex Partners’ Patrick Ghali Bullish On The Best Of The Best

Oct 2 2014 | 5:56am ET

Ten years ago, Patrick Ghali and Robin Nydes co-founded Sussex Partners with the...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

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.