L Squared Management, a hedge fund manager started by former Sanford C Bernstein researcher Liyang Lu, is preparing a long/short fund running on the OP Investment Management (Opim) platform.
The Cayman-domiciled Long-Term Leader Fund will run concentrated buy-and-hold positions as well as short-term event-driven ones on companies with China exposure.
Initial investors are mainly Chinese and foreign high net worth individuals who want to gain China exposure.
“We invest in not only Chinese companies but also global companies with China exposure. In this way, we meet the needs of Chinese investors who want to invest globally without missing out China’s transformation as well as foreign investors who want to invest in China with reduced risk,” said Lu.
Lu added: “We believe in a ‘global vision, China perspective’. As China integrates further into the world economy, the ability to analyse companies from both global and local perspectives gives us an edge in identifying long-term winners.”
Prior to establishing Hong-Kong-based L Squared Management, Lu worked as assistant vice-president at Sanford C Bernstein’s Hong Kong office where he was responsible for researching Asian insurance and Chinese consumer finance companies.
Prior to that, he worked for global hedge funds in the US and Hong Kong and was involved in numerous Chinese and international IPO’s in the investment banking unit of Morgan Stanley Huaxin Securities.
China’s shift from a manufacturing, export driven market into an incubator of innovative firms has given birth to a new generation of companies built on sustainable quality and strategic advantage, said Opim CEO Alvin Fan.
Liyang’s strategy reflects that fascinating change in economic landscape, Fan added.
L Squared preps China-focused long/short fund on AsiaHedge.