1 / 47

Hedge Fund

Hedge Fund. Member list. Lam, Ho-kei Jan 023011 Ng, Lok-hang Jessica 033125 Chan, Ka-po Kate 033139 Lee, Tak-ming Alvin 033228 Wong, Wing-yin Winnie 034025 Kwan, Cheuk-shing Elvis 035052. History of Hedge Fund. History of Hedge Fund. Hedge  trying to offset possible losses

ferrol
Download Presentation

Hedge Fund

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Hedge Fund

  2. Member list • Lam, Ho-kei Jan 023011 • Ng, Lok-hang Jessica 033125 • Chan, Ka-po Kate 033139 • Lee, Tak-ming Alvin 033228 • Wong, Wing-yin Winnie 034025 • Kwan, Cheuk-shing Elvis 035052

  3. History of Hedge Fund

  4. History of Hedge Fund • Hedge  trying to offset possible losses • begin in 1949 by Alfred Winslow Jones • his strategy posted on “Fortune”  short selling and leverage • 1952  A.W. Jones & Co  First Hedge Fund  continuous profit • combination of shared risk to ensure goals • father of hedge fund

  5. History of Hedge Fund (con’t) • Fail & success, quiet & hot  over 2 decades • Late 1990s  Great development & grow rapidly • Currently, over 6,000 exist in industry • size at $1 trillion

  6. Hedge Funds in Hong Kong • History of hedge funds  relatively short in Hong Kong • Intended for sale to public  to be authorized by SFC  comply with hedge funds guidelines issued by SFC in 2002

  7. Hedge Funds in Hong Kong (con’t) • First three authorized funds  First quarter of 2003  2 single hedge funds & 1 FHF • Figures from AisaHedge  first half of 2005  new hedge funds about US $3.5 billions established in Asia  1/3 were entered Hong Kong

  8. Retail Hedge Fund in Hong Kong

  9. History

  10. First Retail Hedge Fund • Approved by the Special Administrative Region’s regulator SFC • Offer to public beyond • Professionals fund manager, divisions of banks, insurance companies &certain pension fund • Private Placement  limited number of persons

  11. Changes in Regulations • Allow fund managers to single strategy hedge funds, FoHFs & capital-guaranteed hedge funds to retail investors • Minimum subscriptions • $50,000 for single strategy fund • $10,000 for FoHFs

  12. First Retail Hedge Fund (con’t) • Authorization of first 3 hedge funds on 28/11/2002  2 single strategy hedge funds • JF Asia Absolute Return Fund • JF Greater China Absolute Return Fund one FoHFs • HSBC Global Strategy Hedge Fund

  13. Regulation of Hedge Funds in Hong Kong

  14. Regulation • Authorization regime govern by SFC • Get authorization before selling in the market • Specific requirements on fund managers • Minimum purchase amount

  15. Fund manager • 4 additional requirements • Assets under management (AUM) • Risk management profile • Internal control system • Information disclosure

  16. Fund manager (con’t) • Professional expertise • 5-year general experience • 2-year experience in specific hedge fund strategy

  17. Fund manager (con’t) • Amount of assets under management • At least US$100 million

  18. Fund manager (con’t) • Risk management and internal control system • Consider business nature • Consider business risk • Set up risk management process • Monitor the model

  19. Fund manager (con’t) • Appointments of representatives and agents • agents involved in the daily operation e.g. administrators, custodians, prime brokers • Sufficient know-how in their own areas • Provide adequate information and training to their selling agents

  20. Regulatory Parameters

  21. Regulatory Parameters • If any company has not complies with the various requirements, then: • liable for a fine of up to HK$100,000 • If it incurred for matters (e.g.: prospectus containing an untrue statement ) • Additional penalties (fines of up to HK$500,000 and imprisonment for up to three years)

  22. Regulatory Parameters (con’t) • Prospectus included: • any prospectus, notice, circular, brochure, advertisement, or other document • offering any shares or debentures of a company to the public • calculated to invite offers offering any shares or debentures of a company to the public

  23. Offer to 'The Public' • There is an exemption: • exempt from the requirement to prepare and register a prospectus • It is necessary that: • He offer is either not made to 'the public' ,or; • The offer falls within one of the available statutory exemptions

  24. Offer to 'The Public‘ (con’t) • Two available exemptions: • Professionals only • Private placement

  25. Six types of Hedge Funds in Hong Kong

  26. Six Types of Hedge Fund in Hong Kong • HSBC Global Strategy Hedge-USD • JF Asia Absolute Return-Notional Class • AJF Greater China Absolute Return-0301 • JF Japan Absolute Return-0308 • JF Korea Absolute Return-0309 • Man Hedge Diversified Ltd

  27. HSBC Global Strategy Hedge Fund匯豐環球策略對沖基金 • NAV (2006-03-31) 12.499 • Total Net Assets 17,960 (in thousand)

  28. Fund performance • Annual Returns (%, USD) • Growth of $10,000 • 2004 gain 5.16% • 2005gain 8.73% • Now gain 4.24%

  29. Fund fact • Minimum Purchase(USD ) • Initial Investment • 10,000 • Additional • 1,000

  30. Fund fact(con’t) • Annual Expense • Mgt & Distribution Fee • 1.65% • Sales Fees • Initial • 5.25% • Deferred • ---

  31. JF Asia Absolute Return JF亞洲先鋒基金 • NAV (2006-04-21) • 44.0127 • Total Net Assets(000's) • 85,300

  32. How has this fund performed? • Annual Returns (%, USD) Growth of $10,000 • 2003 27.5% • 2004 -4.13% • 2005 -1.67% • Now 17.93%

  33. Fund fact • Minimum Purchase(USD ) • Initial Investment • 50,000 • Annual Expense • Mgt & Distribution Fee • 1.00% • Sales Fees • Initial • 5.00%

  34. JF Japan Absolute Return JF日本先鋒基金 • NAV (2006-04-21) • 17589.9200 • Total Net Assets(000's) • 44,905,300

  35. How has this fund performed? • Annual Returns (%, USD) Growth of $10,000 • 2004 23.86% • 2005 7.13% • Now -1.62%

  36. Fund Fact • Annual Expense • Mgt & Distribution Fee • 1.00% • Sales Fees • Initial • 5.00% • Deferred • ---

  37. Case Study 1HSBC Global Strategy Hedge Fund • a fund of hedge funds • a diversified portfolio made up of equity long/short hedge funds

  38. What does this fund own? • Cash 3.5% • Stock 0% • Bond 0% • Others 96.5%

  39. HSBC Global Strategy Hedge Fund (Con’t) • Inception Date:2003-02-28 • Manager Name: Team Managed • Fund Advisor: HSBC Republic Investment Limited

  40. Fund performance • Annual Returns (%, USD) • Growth of $10,000 • 2004 gain 5.16% • 2005gain 8.73% • Now gain 4.24%

  41. HSBC Global Strategy Hedge Fund (con’t)

  42. How risky is this fund ? • Worst Quarter Return2.54% • Number of Funds in Category: 5  diversify risks

  43. Case Study 2JF Asia Absolute Return - Notional Class A • Aggressively managed portfolio of equities, bonds and currencies, and derivatives of any of these • Investing primarily in the Asia-Pacific region (including Japan)

  44. JF Asia Absolute Return - Notional Class A(Con’t) • Inception Date:1998-10-30 • Manager Name: Victor Lee • Mgr Start Date: 2005-07-18

  45. How has this fund performed? • Annual Returns (%, USD) Growth of $10,000 • 2003 27.5% • 2004 -4.13% • 2005 -1.67% • Now 17.93%

  46. JF Asia Absolute Return - Notional Class A (Con’t)

  47. How risky is this fund ? • Worst Quarter Return 12.34% • Number of Funds in Category: 5 • Risk Profile(3-year standard Deviation)

More Related