Singapore hedge fund Asia Genesis Asset Management Pte is closing its macro fund after suffering an “unprecedented drawdown” following China’s stock market rout and Japan’s rally.
Chua Soon Hock’s Asia Genesis Macro Fund had a loss of 18.8% in the first weeks of January, according to a letter sent to investors seen by Bloomberg News. The fund is returning money to investors after losses on long Hong Kong and China equities positions as well as short Nikkei bets, according to the letter.
“I have reached the stage whereby my confidence as a trader is lost,” Chief Investment Officer Chua wrote in the letter. Tough trading since October and a “disastrous” January “has proven that my past experience is no longer valid and instead, is working against me.”
Asia Genesis, which managed $330.2 million at the start of the year, didn’t immediately respond to a request for comment.
Chua said the fund made a “big mistake” in trying to pick the bottom of benchmark Hong Kong indexes. He was also “astounded” with the Nikkei-Hang Seng spread that priced Chinese and Japanese stocks at the same value as in 1991.
https://www.bloomberg.com/news/arti...enesis-shuts-after-big-mistake-on-china-trade
Picking bottoms is not a clever idea running a global macro fund....But fair enough, he admitted his mistakes. "Next time", he will be better at bottom picking!
Chua Soon Hock’s Asia Genesis Macro Fund had a loss of 18.8% in the first weeks of January, according to a letter sent to investors seen by Bloomberg News. The fund is returning money to investors after losses on long Hong Kong and China equities positions as well as short Nikkei bets, according to the letter.
“I have reached the stage whereby my confidence as a trader is lost,” Chief Investment Officer Chua wrote in the letter. Tough trading since October and a “disastrous” January “has proven that my past experience is no longer valid and instead, is working against me.”
Asia Genesis, which managed $330.2 million at the start of the year, didn’t immediately respond to a request for comment.
Chua said the fund made a “big mistake” in trying to pick the bottom of benchmark Hong Kong indexes. He was also “astounded” with the Nikkei-Hang Seng spread that priced Chinese and Japanese stocks at the same value as in 1991.
https://www.bloomberg.com/news/arti...enesis-shuts-after-big-mistake-on-china-trade
Picking bottoms is not a clever idea running a global macro fund....But fair enough, he admitted his mistakes. "Next time", he will be better at bottom picking!
