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Morning Coffee: Where to work in the Hong Kong hedge fund sector

Hong Kong hedge funds

A path to hedge funds opening up in Hong Kong

We’ve already pointed to the boost that Shanghai-Hong Kong Stock Connect is giving to both equity trading and equity research hiring in Hong Kong – and now a new part of the finance sector is emerging as a beneficiary of the scheme: hedge funds.

Some hedge funds in Asia have earned double-digit returns as they “wagered stocks would soar and traded on unusual price disparities in a market still dominated by skittish retail investors”, reports the Wall Street Journal. Asian hedge funds have increased by18% on average since April 2014, when China announced it would go ahead with the stock link, according to Eurekahedge data.

So where should you be working if you want to be at a fund that’s benefited from Stock Connect? Segantii Capital Management, which is headquartered in Hong Kong, has seen its multi-strategy fund rise by 24% so far this year, according to the WSJ. Och-Ziff Capital Management Group’s Asia fund increased 11% in the year to April, more than double the returns of its other main funds, while a China fund run by Pine River Capital Management rose 13% during the same period.

“Stock Connect has been a game changer for hedge funds,” Shane Bolton, head of Goldman Sachs’ prime-brokerage business in Asia, told the WSJ. “I think what people are missing is you have another leg coming,” he added, referring to the expected trading link between the Hong Kong and Shenzhen exchanges.

While this is all potentially good news for anyone wanting to move to the buy-side in Hong Kong, hedge funds won’t be rushing to hire new staff right away, says a headhunter in the city. “It will take time for China’s reforms to trickle down into a need for new headcount.”

Meanwhile:

Goldman Sachs appoints Andrea Vella and Kate Richdale as co-heads of investment banking in Asia. (Wall Street Journal)

What to expect from an internship in Hong Kong. (Mergers & Inquisitions)

Why it’s good for relationship managers in Singapore to seek a second opinion – from a computer. (Business Times)

Hong Kong financial stocks up on cross-border fund scheme news. (South China Morning Post)

UBS quits Australian wealth management. (Sydney Morning Herald)

Asian entrepreneurs surpass Europeans in self-made billionaires list. (Straits Times)


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