Q4-2018 Swiss-Asia Communication

April 18, 2019

18th April 2019

Q1-2019 Swiss-Asia Communication

Swiss-Asia Holding Pte Ltd

Written by Steve Knabl, COO & Managing Partner

The Rise of the Hedge Funds

Trade wars, a slowdown in global economic growth, longevity or disruptive technological advances are some of the factors of greatest uncertainty in the market. This might eventually give rise to volatility episodes, such as those occurred in 2018. Given this scenario, the alternative investment industry has become a significant part of the global economy as 66% of investors plan to increase alternative investment allocation in 2019 (Financial Times).

In Q1 Hedge funds staged a strong recovery, according to data by Hedge Fund Research, with the HFRI Fund Weighted Composite index rising about 5.9% and the HFRI Asset Weighted Composite Index posting gains of 3.1%. “Risk-on sentiment dominated both hedge fund and global financial market performance in the first quarter of 2019, marking a sharp reversal from the risk-off sentiment which dominated the fourth quarter of 2018.

After a lackluster 2018, the Q1-2019 Top 10 at Swiss-Asia have demonstrated quite some skill to outperform the general markets. Time to get in the game?

Shenton Global Dividend is 4 years old

Shenton Global Dividend Index AMC – As our inaugural AMC reaches its 4th birthday we are pleased to report that Shenton Global Dividend has outperformed its benchmark significantly over all time periods. What started out as an experiment by one of our wealth managers, Anthony S. Casey, to track the most successful stock, bond & ETF picks from our panel of private banks, has morphed into a top performing basket of Global blue chip dividend paying stocks and high yield bonds with hedged downside risk via short ETFs. If you want to learn more about the strategy please give Anthony a shout.

FUND PLATFORM DEVELOPMENTS

Serendipity SPC – Trimble Fund SP – Greg Crowe is the Founder and CIO of Serendipity Growth Capital (SGC), with a decade of direct investments and investment management experience across Asia and North America. Prior to founding SGC in 2018, Greg was responsible for direct investments for a prominent Asia based family office, garnering over 8 years of experience investing in emerging growth companies in alternative sectors. Over his career, Greg has invested over USD 200m in private equity and debt instruments spanning across Real Estate, Technology, Hospitality, Medicine, yielding above industry returns for his family office. In North America, Greg has spent the past 7 years focused on tracking, researching, analyzing, and investing in alternative industries. The Fund will take exposure to Venture capital investments, principally but not solely in companies in Northern America who are operating in the traditional and alternative medicine as well as the recreational industry, such as alternative herbal therapies and peripheral medicinal industries. Exposure will be taken by way of equity purchase (preferred stock and common equity instruments) and debt financing (loans and convertible loans).

Double Falcon Fund – The fund seeks to combine a contrarian approach to picking stocks focused on the capital cycles across sectors globally with a macro overlay that is determined by a monetarist asset allocation framework. It seeks to own businesses in sectors where capital investments have declined overtime, therefore forcing industry returns to mean revert upwards in the absence of disruptive forces. The fund would also own businesses which have specific defensible characteristics which are hard to replicate and enable it to generate a superior return on capital for a longer than normal period. Calvin Chia has 13+ years of experience in the hedge fund industry and was most recently Partner and Investment Manager at NPJ Asset Management, a firm set-up by Nicholas Johnson, ex-CIO of Pictet Asset Management. NPJ Global Opportunities fund is a Long-biased Equity Hedge Fund which employed a monetary framework to drive asset allocation. The fund was nominated for best Global Equity Hedge Fund of the year in 2010,2012 and 2017 by EuroHedge. Prior to NPJ Asset Management, he was an investment analyst at Cedar Partners with a focus on macro thematic investing. He holds a BSc Economics from the London School of Economics & Political Science (LSE). He is a CFA Charterholder and has passed all levels of the Chartered Market Technician (CMT) exams.

Pearl River Fund SP – The investment objective of the Fund is to provide long-term above average risk-adjusted returns through investments in US Life Settlements and funds investing in US Life Settlements. US Life Insurance policies are acquired in the open market to take on the future premium commitments in exchange for the maturity proceeds. The seller in the open market receives an agreed purchase price for the policy from the fund.  The Investment Advisor to the fund is SL Investment Management Ltd. SL builds & manages portfolios for global institutional investors based on UK and US traded life insurance policies (TEPs and Life Settlements). It is authorised and regulated by the UK Financial Conduct Authority as an Alternative Investment Fund Manager (AIFM). With over 25 years experience, SL has managed/advised 2.6 Billion USD of assets in secondary insurance markets for Commerzbank AG, Credit Suisse, Allianz, HSBC and other global financial institutions. They use proprietary actuarial pricing model to achieve superior risk adjusted returns. The Strategic Advisor, Rostrum Grand Limited is a Hong Kong based, SFC licensed, independent investment advisory firm. Rostrum Grand uses qualitative and quantitative research to construct portfolio of investment strategies which exhibit low correlation to each other and aim to deliver alpha over the general market.

WEALTH MANAGEMENT DEVELOPMENTS

Charlie Bigard Ong (Hong Kong) – We are pleased to announce that Charlie Bigard-Ong is joining our Team in Hong Kong with immediate effect. Charlie is a Wealth Manager and will operate under our EAM model as a Senior Relationship Manager covering international clients. Born and raised in France, she has been living and working in Singapore and Hong Kong since 2004 with leading private banks, most recently with LGT Hong Kong. During this time, she has focused on dealing with Family Offices and international clients. Her appointment is part of the Swiss-Asia commitment to expand its Wealth Management practice in Hong Kong and Asia.

HUMAN RESOURCES

On behalf of the Executive Management, we wish you all a great Q2 and look forward to more exciting announcements in the next newsletter.

Steve Knabl