Pictet Funds, the fund distribution arm of Swiss private bank Pictet & Cie, is launching the Pictet Total Return-Mandarin Fund, a Luxembourg-domiciled Ucits III long/short Asian equity hedge fund.
The fund will be managed by Lan Wang Simond, who has over 16 years’ investment experience managing assets across the Greater China region, using long only, absolute return and long/short strategies.
The fund strategy aims to reduce correlation to the market and generate less volatile, positive asymmetric returns. The fund will try to capture the benefits of China’s secular growth, minimising downside risk in periods of market turbulence and maximising alpha through specific stock ideas.
The fund invests primarily in Chinese companies listed in Hong Kong and mainland China. When investing in Hong Kong, Taiwan or other Asian countries outside the Greater China region, the investment team looks for companies deriving at least 30% or more of their earnings from the Greater China region.
The fund will be long biased, holding around 30-60 long positions and between zero and 30 short positions. No specific minimum or maximum position size has been specified but exposures range from 40%-130% long and 20%-70% short with a gross range of 60%-200% and a net of 20%-80%.
