Marco Polo’s Pan China Fund Faces Rough Seas

Sep 9 2008 | 9:15am ET

Marco Polo Pure Asset Management’s new long/short China-focused hedge fund has had difficult start to its journey.

The MPM Pan-China Fund launched in May, when volatility hit the Chinese markets with the force of a typhoon. In its first three months of trading, the fund is down 15.65%. However, the fund’s sponsor, Magnum Fund Management, is trying to stay optimistic about its latest offering.

“Among the China domestic market’s other advantage is that the A-Share [price/earnings to growth ratio] is now one of the lowest of the major markets,” according to the firm’s latest investor newsletter.

“Year-over-year earnings growth has accelerated to approximately 60% across the A-Share market, and earnings are expected to increase by 30%-40% annually over the next five years. In addition, Chinese government pension assets exceed US$200 billion, but only 24% are currently invested equities, which translate into a lot of room for growth.”

The MPM Pan China Fund charges a 2% management fee and a 20% incentive fee with a minimum investment requirement of $250,000 and monthly redemptions.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

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