Hedge Fund PCA Shuts After China Sovereign Fund Redeems

Jan 27 2014 | 2:00pm ET

A hedge fund backed by China's sovereign-wealth fund has closed after the China Investment Corp. withdrew its investment.

PCA Investments shut its doors last week, according to The Wall Street Journal. CIC had been PCA's only major investor and had provided almost all of its roughly US$500 million in assets.

CIC, which has been reshuffling its management recently, decided to redeem from PCA due to a strategy change, Bloomberg News reports.

PCA, which was founded in 2011 by Platinum Grove Asset Management veteran Hang Hu and former Merrill Lynch executive Wing Lau, has posted positive returns in each of its three years, including double-digit gains in each of the last two.

PCA was based in Beijing and Hong Kong. At least five jobs have been lost at the latter site, although the fate of Hu and his Beijing-based staff is unclear, Bloomberg reports. Lau left the hedge fund last year.


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