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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

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Member list
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

  • 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


History of hedge fund con t
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


Hedge funds in hong kong
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


Hedge funds in hong kong con t
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




First retail hedge fund
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


Changes in regulations
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


First retail hedge fund con t
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



Regulation
Regulation

  • Authorization regime govern by SFC

    • Get authorization before selling in the market

    • Specific requirements on fund managers

    • Minimum purchase amount


Fund manager
Fund manager

  • 4 additional requirements

    • Assets under management (AUM)

    • Risk management profile

    • Internal control system

    • Information disclosure


Fund manager con t
Fund manager (con’t)

  • Professional expertise

    • 5-year general experience

    • 2-year experience in specific hedge fund strategy


Fund manager con t1
Fund manager (con’t)

  • Amount of assets under management

    • At least US$100 million


Fund manager con t2
Fund manager (con’t)

  • Risk management and internal control system

    • Consider business nature

    • Consider business risk

    • Set up risk management process

    • Monitor the model


Fund manager con t3
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



Regulatory parameters1
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)


Regulatory parameters con t
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


Offer to the public
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


Offer to the public con t
Offer to 'The Public‘ (con’t)

  • Two available exemptions:

    • Professionals only

    • Private placement



Six types of hedge fund in hong kong
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


Hsbc global strategy hedge fund
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)


Fund performance
Fund performance

  • Annual Returns (%, USD)

  • Growth of $10,000

  • 2004 gain 5.16%

  • 2005gain 8.73%

  • Now gain 4.24%


Fund fact
Fund fact

  • Minimum Purchase(USD )

  • Initial Investment

    • 10,000

  • Additional

    • 1,000


Fund fact con t
Fund fact(con’t)

  • Annual Expense

  • Mgt & Distribution Fee

    • 1.65%

  • Sales Fees

  • Initial

    • 5.25%

  • Deferred

    • ---


Jf asia absolute return jf
JF Asia Absolute Return JF亞洲先鋒基金

  • NAV (2006-04-21)

    • 44.0127

  • Total Net Assets(000's)

    • 85,300


How has this fund performed
How has this fund performed?

  • Annual Returns (%, USD) Growth of $10,000

  • 2003 27.5%

  • 2004 -4.13%

  • 2005 -1.67%

  • Now 17.93%


Fund fact1
Fund fact

  • Minimum Purchase(USD )

  • Initial Investment

    • 50,000

  • Annual Expense

  • Mgt & Distribution Fee

    • 1.00%

  • Sales Fees

  • Initial

    • 5.00%


Jf japan absolute return jf
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


How has this fund performed1
How has this fund performed?

  • Annual Returns (%, USD) Growth of $10,000

  • 2004 23.86%

  • 2005 7.13%

  • Now -1.62%


Fund fact2
Fund Fact

  • Annual Expense

  • Mgt & Distribution Fee

    • 1.00%

  • Sales Fees

  • Initial

    • 5.00%

  • Deferred

    • ---


Case study 1 hsbc global strategy hedge fund
Case Study 1HSBC Global Strategy Hedge Fund

  • a fund of hedge funds

  • a diversified portfolio made up of equity long/short hedge funds


What does this fund own
What does this fund own?

  • Cash 3.5%

  • Stock 0%

  • Bond 0%

  • Others 96.5%


Hsbc global strategy hedge fund con t
HSBC Global Strategy Hedge Fund (Con’t)

  • Inception Date:2003-02-28

  • Manager Name: Team Managed

  • Fund Advisor: HSBC Republic Investment Limited


Fund performance1
Fund performance

  • Annual Returns (%, USD)

  • Growth of $10,000

  • 2004 gain 5.16%

  • 2005gain 8.73%

  • Now gain 4.24%



How risky is this fund
How risky is this fund ?

  • Worst Quarter Return2.54%

  • Number of Funds in Category: 5  diversify risks


Case study 2 jf asia absolute return notional class a
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)


Jf asia absolute return notional class a con t
JF Asia Absolute Return - Notional Class A(Con’t)

  • Inception Date:1998-10-30

  • Manager Name: Victor Lee

  • Mgr Start Date: 2005-07-18


How has this fund performed2
How has this fund performed?

  • Annual Returns (%, USD) Growth of $10,000

  • 2003 27.5%

  • 2004 -4.13%

  • 2005 -1.67%

  • Now 17.93%



How risky is this fund1
How risky is this fund ?

  • Worst Quarter Return 12.34%

  • Number of Funds in Category: 5

  • Risk Profile(3-year standard Deviation)


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