A pair of former ICBC Credit Suisse Asset Management traders are ready to launch their own hedge fund, with an eye towards raising US$100 million.
Kang Hao and Jimmy Weng have set up Genesis Capital Investment in Hong Kong and will launch their maiden fund by the end of the month, Reuters reports. The new firm is betting that China's plans to reform its economy will create opportunities—and an appetite for China-focused hedge funds among investors.
"Earnings growth is still strong, GDP growth is still over 7%, and you have a re-rating potential," Weng told Reuters. "I will be net-long biased heading into the new year."
Genesis will invest in Chinese shares listed in Hong Kong and in the U.S. The duo's former fund at ICBC Credit Suisse, which had more than US$500 million in assets, returned almost 140% over the past five years.
Hao, formerly head of investment at ICBC Credit Suisse in Hong Kong, and Weng, a former portfolio manager at the firm, hope to raise about US$100 million next year. At inception, they'll have US$20 million in initial capital from friends, family, institutions and senior management from ICBC Credit Suisse. Weng said that their former firm may invest, as well.