Galaxy Asset Management (HK) has chosen Merchant Capital, the Ucits III platform provider, to help launch a Ucits version of its Galaxy China Opportunities Fund.
Subject to regulatory approval, the Ucits fund is expecting to launch in July with a target of approximately USD500m in assets under management.
The fund will initially be aimed at institutional and high net-worth investors in Europe and Asia, with a minimum subscription of EUR100,000.
The fund will be based on Galaxy’s original Cayman Islands-domiciled fund, called the Galaxy China Opportunities Fund, which invests in the Greater China markets of mainland China, Hong Kong and Taiwan.
It focuses on four key strategies: position-taking (alpha generation by stock/sector picking, both long and short); special situations (IPOs, M&A, structural opportunities, reverse takeover, and asset injection); long/short (hedged opportunities); and tactical trading (futures & options and arbitrage).
The fund is idea-driven, typically holding around 50 stocks at any one time, excluding positions in arbitrage activities. The strategy employs both a top-down and bottom-up approach, reinforced by technical analysis and market intelligence, and is invested predominantly in mid- and large-cap opportunities.
Joe Chan and Johnson Cheung will act as advises to the Ucits fund under the Merchant Capital umbrella. Between them they have over 40 years of combined experience in financial markets.
George Cadbury, director of funds at Merchant Capital, says: “Including the Galaxy China Opportunities Fund in our Ucits umbrella demonstrates how we can take an existing fund and ensure its adherence to the transparency, liquidity, and overall ‘investor friendliness’ necessary for a Ucits structure. We are excited that Galaxy, with their strong track record, has chosen Merchant Capital to assist with their move into the Ucits market.”