China Sovereign Wealth Fund Readies European Hedge Fund Allocation

Oct 2 2013 | 11:10am ET

China's sovereign wealth fund is poised to put some of its nearly $600 billion in assets to work at European hedge funds.

China Investment Corp. absolute return managing director Roslyn Zhang told the SALT conference in Singapore that it is "getting closer to the point of taking action" after two years investigating the space.

"From the intelligence we gathered from managers, we had been lacking in confidence to pull the trigger," she said. CIC has been focusing on distressed investments, but hasn't yet identified which strategy it will seek in Europe.

Once it does, it will create a list of 10 established managers, eventually cutting that roster to between three and five.

CIC has been investing with hedge funds for four years, and Zhang said that SWF's experience "has been very positive." But she said it needed two years' lead-time before making an investment, because "the investment process itself will require six to nine months, and also the nature of hedge fund investments is that you can't really turn over your portfolio that quickly."


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note