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Hong Kong’s Segantii fund up 29 per cent this year

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It’s been a bumper year so far for Hong Kong hedge fund manager Segantii Capital Management Ltd.

It’s been a bumper year so far for Hong Kong hedge fund manager Segantii Capital Management Ltd. Whilst hedge funds globally have seen performance getting battered by whipsawing markets, the firm’s Segantii Asia-Pacific Equity Multi-strategy fund is up an incredible 29 per cent through September reported Bloomberg this week, and is on track for its best-ever year. Although the firm’s chief executive Kurt Ersoy was unwilling to comment, an investor newsletter shows that the fund gained 7.6 per cent in July and 5.3 per cent in August. This was during one of the worst quarters for hedge funds since ’08. A massive sell-off in August saw equity markets plummet, the MSCI Asia Pacific Index shedding 10 per cent of its value. Multi-strategy funds like Segantii are better able to cope during periods of volatility as they are not directional in nature.

The newsletter said that the fund’s blend of relative value and events had enabled it to profit during the initially benign and subsequently volatile environment. Relative value trades work by profiting from price arbitrage between a company’s different share classes or between stocks listed on different exchanges. “August and September saw volatility rise for most asset classes, particularly in Asian equities and currencies. Returns were driven primarily by our overnight and China trading strategies,” the newsletter said. The fund is on track to beat its performance in ’08 when it returned 24 per cent.     

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