China-Owned Firm To Launch Hedge Funds

Jul 3 2012 | 1:23pm ET

China's Everbright Ltd. is getting into the hedge fund business.

The state-controlled company's Everbright Capital Management is set to launch two funds this week and another next month. The first two will be multi-strategy offerings, while the third will focus on healthcare.

To run the funds, Everbright has hired Ali Ahmed from the Royal Bank of Scotland and Adam Weinrich from Jana Partners, Bloomberg News reports. The former, who will lead a team of four, will run an Asia-focused fund with equity long/short, relative value, convertible arbitrage and event-driven portfolios. The latter will run a global macro and event-driven fund.

A third team will run a market-neutral equity long/short fund investing in global healthcare. John Shen, Everbright Capital's chief investment officer and a Chilton Investment Co. and Cheyne Capital Management veteran, said that that group would join the firm in the beginning of August, but would not identify its leader, other than to say that he worked at a U.S.-based hedge fund.

In addition, Shen said Everbright would double its fund lineup within a year.

"Some managers are keen to come to Asia, tempted by the opportunities the region promises," Shen told Bloomberg. "Potential investors in Hong Kong and China want to diversify and invest outside Asia. Asia may be too highly correlated with their existing investments."

Both Ahmed and Weinrich will get a "few million dollars" in seed capital from Everbright. Both the firm and the managers will then begin to raise outside capital; Everbright plans to fundraise, beginning in February, for a master fund that will invest in the firm's hedge funds.

Ahmed was head of global equity trading at RBS and Weinrich a managing director at Jana, where he covered financial institutions, sovereign and investment-grade debt and derivatives.

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