The Hamon Greater China Absolute Return Fund, which is open to European and Asian investors, will be managed by the firm’s local China specialists Nina Wu, Lisa Jiang and William Liu.
The fund will employ the same stock ideas as the existing Hamon Greater China Fund, managed by the same team, but will also have the flexibility to hedge against risk by utilizing cash and index futures as well as using some individual company shorts.
It will invest in China’s A, B & H markets, Hong Kong market, Taiwanese market and Chinese companies listed in overseas markets.
Fund manager and investment director Nin Wu said: “We are seeing many exciting investment opportunities in the Greater China region.
“With our “bottom-up”, “non-market capitalization constrained” stock selection approach, we will pick the growing companies with attractive valuations and catalyst to drive their prices.
“However, we recognize that liquidity and risk level aversion play important roles in determining share prices, so we will have the flexibility to use cash and futures to hedge our long investments. We aim to manage the risk of the volatile markets while allowing investors to benefit from this growing economy.”