Baring’s China Hedge Fund Down 18%

Jul 9 2008 | 11:44am ET

What a difference a year makes. Baring Asset Management’s China Absolute Return fund last month dropped 8.4%, leaving it down 18.83% year-to-date. The four-year-old fund is on pace for its worst year ever after returning 38.58% last year.

Last month, Chinese markets continued to feel the effect of the higher crude oil price and weaker global equity markets, according to the firm. Investor sentiment was also affected by the energy price liberalization policy announced by the Chinese government.

“The equity market, as measured by the MSCI China Index, fell by 12.2% during the month in U.S. dollar terms. The power generation and telecom sectors were particularly weak performers, with power companies hit by the tariff increase and telecoms affected by government-imposed restructuring,” said the firm.

Going forward, Baring said it has become more cautious on the outlook for the equity market in China over the near term since the short-term downturn, against a background of long-term growth, “may be more challenging than we previously thought.”

The US$40 million fund began trading in July 2004 and is listed on the Irish Stock Exchange.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...