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."