Chinese Sovereign Wealth Fund Favors Large HFs

Oct 15 2012 | 9:31am ET

With $482 billion under management, it's not surprising that China's sovereign wealth fund prefers to invest in larger hedge funds.

“We tend to invest in large market funds because of our own size; small funds probably cost us the same amount of work,” said Hua Fan, the head of fixed income investment at the China Investment Corp. “With CIC’s unique position, we do have great access to hedge funds and can negotiate for lower fees.”

Fan made the remarks during a New York conference sponsored by the Chinese Finance Association on Sunday, reports Bloomberg. He said volatile markets and lower returns from fixed-income and other investments have driven investors to hedge funds.

“We do face growing challenges,” said Fan. “People all think equities are too volatile. Bonds don’t give you 5% return. So what we do? Lots of funds put money into hedge funds.”


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of