Bloomberg News

Former TCI Asia Head John Ho’s Hedge Fund Gains 8.6% in 2011

January 04, 2012

(Updates with percent of Asia funds with positive returns in both years in fourth paragraph.)

Jan. 4 (Bloomberg) -- Janchor Partners Pan Asian Fund, run by the former Asia head of the Children’s Investment Fund Management UK LLP, is estimated to have returned 8.6 percent in 2011, the second-worst year for hedge funds globally.

The more than $1 billion fund, which invests in Asian equities, is up 47 percent since inception in January 2010, according to a preliminary performance update sent to investors late yesterday.

Eurekahedge Hedge Fund Index retreated 4 percent last year as the European debt crisis and political wrangling shook investment sentiment, the second annual drop on record after a sharper decline in 2008, the Singapore-based data provider said in a statement yesterday. The loss cut the gauge’s return in the last two years to about 6 percent, according to Bloomberg calculations based on Eurekahedge Pte data.

Just under 15 percent of the 193 Asia-focused constituents of the HFRI Fund-Weighted Composite Index reported positive returns in both 2010 and the first 11 months of 2011, including funds of hedge funds, according to the Chicago-based data provider.

“We look at our performance over multi-year market cycle,” said John Ho, 35, the founder and chief investment officer of Janchor Partners Ltd. in Hong Kong, adding most of the fund’s capital is locked up for three years. “We don’t focus on any one-year return.” He declined to comment further on performance and investments last year.

Short Selling

Ho opened and ran the Hong Kong office of Children’s Investment Fund, a London-based hedge fund founded by Christopher Cooper-Hohn and also known as TCI, before leaving in July 2009 to plan his own fund.

Janchor started trading in January 2010 with about $40 million of capital. It seeks to make money from both buying undervalued stocks and selling borrowed shares whose value is expected to fall, Ho previously said.

Eurekahedge Asia Long-Short Equities Hedge Fund Index, which tracks funds employing a similar strategy to Janchor’s, lost 10 percent last year, according to a preliminary data, the second biggest annual loss on record after 2008. In a short sale, an investor borrows stock and sells it in the hopes it can be bought back later at a cheaper price.

Just under 32 percent of Asia-focused hedge funds reported positive returns in the first 11 months of 2011, declining from 75 percent for all of 2010, said Eurekahedge. That implies less than 25 percent of Asia-focused hedge funds generated positive returns for both years, according to Bloomberg calculations.

--Editors: Tomoko Yamazaki, Malcolm Scott

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net.

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net


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