Hong Kong-based hedge fund Strategic Vision Investment has wound down its primary Value Multiplier Fund, a long-short investment vehicle which focused on Chinese equities, according to a report by Reuters.
The report cites three sources familiar with the matter as revealing that the fund’s holdings were liquidated at the end of July, with external capital being returned to investors. According to one of the sources, the decision to close was prompted by SVI’s assessment that the current geopolitical tensions and evolving investment landscape in the region leave little room for the expansion of its China-focused strategy.
Established in 2014 by Ken Xu as BosValen Asset Management, the firm rebranded as SVI in 2020 and managed assets exceeding $1bn as of last year.
SVI now plans to transition into a multi-family office, managing wealth for affluent families using its own capital along with investments from new strategic partners, according to one of the sources.
The Value Multiplier Fund, which managed over $400m at its peak, posted a 1.1% loss last year, but reportedly delivered an annualised return of 28% since 2020.
