Business Week – GFIA Pte, a Singapore-based hedge- fund firm and consultant, said it stopped coverage of most Chinese hedge funds because they lack transparency and sold all of its investments with mainland Chinese managers.<\/p>\n
The value of GFIA\u2019s China-dedicated funds peaked at about $3 million, 10 percent of its portfolio, Peter Douglas, GFIA\u2019s principal, said in a telephone interview. Douglas shifted coverage to Hong Kong-based managers with experience in the financial industry outside of Asia, from those in mainland China, he said.<\/p>\n
\u201cA hedge fund is really all about the people behind it, and less about where the firm is, the structure, and all the rest of it,\u201d Douglas said. \u201cThe problem is there is no deep culture of openness and transparency in China. If you\u2019re running a more qualitative risk-management approach, you really need a breath of qualitative information.\u201d<\/p>\n