Kaison Asset Management, a Hong Kong-based hedge fund manager recently established by former ICBC vice-president Winnoc Lui, has launched a pan-regional fund.
The Kaison Asian Small & Mid Cap Fund, which has been launched on the OP Investment Management platform, will target investments within US and Asian ex Japan markets.
The long/short portfolio will focus on small and mid-cap companies and derivatives such as index futures for hedging. Although the portfolio may also include options and fixed income.
“Last year, equity markets suffered mainly due to the trade war, mispricing these small and mid-cap companies across Asia,” commented Lui.
“There are more opportunities than people realise, and few funds leverage the regional exposure. When you compare the value of small and mid-cap companies across these different markets, you realise there is huge potential.”
The fund does not have a specific sector or market focus, but Lui said he prefers to look at companies with steady cashflow and a healthy balance sheet.
“So, portfolio weighting will depend on the catalysts and conviction levels the fund has and looks at. For example, the fund would be interested in a new energy vehicle and infrastructure space in Korea, and a consumer space in Southeast Asia. Regions like Hong Kong and China would be more a policy and sentiment driven selection.”
Prior to establishing Kaison, Lui, was vice-president in the asset management department at ICBC International Holdings managing assets of $300m, focusing on Hong Kong and China equities, as well as developing investment strategies, sector allocation, and working on portfolio management.
Before this, he was a portfolio manager at DNB Asset Management’s global emerging market allocation for Asia, prior to DNB’s departure from Hong Kong.
“There are strong Asia small-mid cap managers in the region, but most are single country focused. Winnoc’s great pedigree speaks well to his research depth and breadth in portfolio management skills,” Alvin Fan, CEO of OP Investment commented.
ICBC exec launches Asia equities fund on AsiaHedge.