Friday, 24 February 2017
Last updated 1 hour ago
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.