Abax global capital obtained 28% Gain in 2011 and plans to continue to pursue privatization and buyout deals
5/9/2012 1:16:36 PM
Abax Global Capital, a manager of $900 million of hedge and private equity funds, plans to start a fund this year to invest in U.S.-listed Chinese companies that will be taken private. Abax global capital special situations fund return 28 percent last year while the HFRI Fund-Weighted Composite Index declined 5 percent last year.
Abax global capital is seeking $300 million initially for the fund, which it may start in the first half, Donald Yang, its Hong Kong-based managing partner, said in an interview yesterday.
Managers like Abax global capital are planning funds with multi-year restrictions on redemptions to enable longer-term investments. Swings in frequently traded assets and the high correlation between different markets led to hedge funds' second-worst annual performance last year since at least 1990, according to data tracked by Chicago-based Hedge Fund Research Inc.
"It's very hard for a pure public strategy in this market," said Yang. "From a risk-reward point of view, it's going to be a very challenging market for equities, probably more downside than upside. Credits are the same story."
The Abax global capital special situations fund bets on companies in Asia, especially in China, whose debt and equity prices move as a result of mergers, hostile takeovers, asset sales and large share buybacks.