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

Direct Lending: What’s Different Now?

Mar 14 2017 | 8:43pm ET

Senior direct lending funds have become riskier over the past four years, with leverage...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of