JERSEY CITY, N.J. (HedgeWorld.com)–John Li Huaizhong has started a China-focused multi-strategy hedge fund to complement two other multi-strategy funds already up and running at this Qinhan Capital Management.
According to an article in FinanceAsia.com, Mr. Li has opened an office in Shanghai. The Qinhan China Fund LP will pursue long/short strategies in equities, fixed income, convertibles, closed-end funds and Chinese securities listed overseas, according to the article. More specifically, the article reports, Mr. Li plans to use a kind of quasi-convertible arbitrage strategy, leveraged fixed-income arbitrage, so-called vega trades in which options are traded to capture price-to-volatility changes, and a strategy that bets on convergences or premiums in closed-end mutual funds.
Trading in the new fund is scheduled to start March 30, after Mr. Li retains a prime broker.
Mr. Li serves as Qinhan’s chief investment officer. Zhang Shijie is head of research and compliance. Horacio Marquez is executive marketer. Ken Dooley serves as risk management consultant.
Fees will be 1.5% for management and 20% of performance above a high watermark. There will be a minimum one-year lockup, according to FinanceAsia.com.
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