Photo with three skyscraper and a shelve with hanging red chinese lampion

Summary

  • We believe that China’s markets are becoming a key source of alpha and China’s transition from beta to alpha is one of the current ‘mega-trends’ in relative value investing.
  • China is actively focused on reforming its financial sector, and we believe that is creating opportunities for relative value trading that haven’t been available to investors in the past.
  • QFII and RQFII reforms are likely to drive a significant increase in access to liquidity in China’s A-share markets, thus increasing the potential opportunities for long/short investors like ourselves to exploit inefficiencies in the market.
  • We believe high retail participation, improving liquidity, reforms to allow shorting and margining, and low analyst coverage have combined to create a “golden age” for relative value investors.

About O’Connor

O'Connor is a global single-manager hedge fund platform within UBS Asset Management, with complete independence in regard to investment decision-making, offering industry-leading multi-strategy and standalone capabilities.

We have over 40 years of institutional experience in trading and market making and 20 years’ experience as a hedge fund manager with a strong focus on relative value investing and risk management.

O'Connor's capabilities cover a wide range of investment programs and we manage over USD 11.0bn1 in assets on behalf of institutional and high net worth clients. The firm has a global operating platform with offices located in New York, Chicago, Stamford, London, Hong Kong, Singapore and Shanghai.

Contributors

John Bradshaw

John Bradshaw

O’Connor Head of Asia Long/Short team,
Senior Portfolio Manager; based in Singapore.

Jia Tan

Jia (TJ) Tan

O’Connor Head of Research for China Long/Short;
based in Shanghai.

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