Asian hedge fund platform OP Investment Management (OPIM) has partnered with Longrising Asset Management (Longrising) to launch the Longrising Prosperous China Fund, a Cayman-domiciled hedge fund for Professional Investors only.
The Fund will replicate Longrising’s strategy in the China A-share market partially, and deploys a top-down, long-short strategy mainly investing in China-related equities listed in China, Hong Kong, and United States stock markets to achieve long-term capital appreciation under a controllable risk level. The investment process begins with reviewing the economic cycle to adjust overall exposure, which allows the fund to enjoy the growth while control the downside risk. Plus in-depth thinking of the logic beneath various economic cycles, and searching and increasing exposure of promising sub-sectors. Finally, select high conviction companies under each sub-sector and achieve diversification of the portfolio. Meanwhile, the fund will utilise a wide range of instruments to control risks and enhance returns.
Longrising is a leading Chinese private fund management company, managing equity long-only products with an AUM of over RMB20 billion in China.
“Our team members come from some of China’s largest asset management organisations and the most influential research institutions. We pride ourselves on rational and pragmatic investment styles,” says Xiaojie Zeng, founder of Longrising, who manages the fund.
“Regarding the fundamental and momentum investment, we consider the macro trend first, select an appropriate industry, and choose the company last. Meanwhile, we make dynamic adjustments and tactical trading based on macro trend momentum in the market. We capture investment opportunities timely and generate revenue through both fundamental and tactical approach.”
Having had 15 years’ experience in the securities industry, Zeng has specialised in top-down macro analytics and industry comparison. He has won four Golden Bull Fund Manager Awards, given his experience in investment and asset management. Before founding Longrising, he had been working in China Life Insurance and China Life Asset Management on behalf of investment management and asset allocation. Zeng graduated from Peking University with a master’s degree in Finance and a bachelor’s degree in Economics.
Alvin Fan (pictured), Chief Executive Officer of OPIM, says: “We are now seeing increasing top-tier Chinese fund managers landing overseas markets. We believe that an excellent strategy, coupled with institutional-grade technical and operational supports, will help these top managers replicate the same credibility and success with global investors as they do onshore.”
Longrising is OPIM’s third fund online in 2018 after having launched a total of 12 funds off their platform in 2017.
