Hedge Fund Ovata Capital is Hiring Four People as Its Assets Surpass $1.1 Billion - Latest Global News

Hedge Fund Ovata Capital is Hiring Four People as Its Assets Surpass $1.1 Billion

Ovata Capital Management Ltd., the Hong Kong-based hedge fund firm led by BlueCrest Capital Management LLP alumnus James Chen, recently hired four portfolio managers and traders after increasing its assets to over 1.1, according to a person familiar with the matter billion US dollars.

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(Bloomberg) — Ovata Capital Management Ltd., the Hong Kong-based hedge fund firm led by BlueCrest Capital Management LLP alumnus James Chen, recently hired four portfolio managers and traders after growing its assets to more than $1.1 billion. Dollars had increased, according to a person with knowledge of the matter.

Ovata has hired Dan Ho, also formerly of BlueCrest, as a portfolio manager focused on equity relative value investing, said the person, who spoke on condition of anonymity to discuss private information. Jon Lowry, who works at Millennium Management and Elliott Management Corp. will join as event-focused portfolio manager for Asia.

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Ovata has also hired Lucas Eshleman and Dominic Ho as traders, the person added. Chen declined to comment.

Chen left BlueCrest to found Ovata in 2017 with more than $200 million. Its investors include the Canada Pension Plan Investment Board and New Holland Capital. Ovata employs around 40 people, split roughly equally between investment and non-investment employees.

The company has endured some of the most turbulent years in the Asian hedge fund industry. Geopolitical tensions, regulatory changes and an economic slowdown have plunged those who had big bullish bets on China into significant losses over the past three years. Multi-strategy managers also had to compete for talent with global giants with deeper pockets like Millennium.

Investor preference has shifted from China-focused managers to companies like Ovata that trade across Asia and can take advantage of opportunities in various investment strategies to generate more stable returns.

Ovata’s fund outperformed peers last year, rising 10%, and reported a 5.6% increase in the first four months of this year, the person said. An index from Eurekahedge Pte that tracks Asia-focused hedge funds rose slightly by 2% last year and 3.4% in the first four months of 2024.

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Arbitrage and relative value trades contributed to Ovata’s gains this year. India has been a key driver of returns over the past 18 months, the person added.

Part of Ovata’s trading involves profiting from holding company shares over subsidiaries. It also smoothes out price differences between stocks of the same companies listed on different exchanges.

Corporate governance reforms have led companies in Japan to liquidate cross-holdings and prompted holding companies to spin off subsidiaries for separate listings. The South Korean government’s “Corporate Value Up” program, which encourages listed companies to improve their valuations through tax incentives, is raising expectations for similar activity.

In December, Ovata also added Dennis Collins, previously of LMR Partners, as a portfolio manager focused on equity sales in anticipation of reviving the deal, the person said.

Ovata must compete for talent from global competitors. Abhinav Maheshwari, a partner at the relative value investing firm, left the firm this year. Karyo Oh, a portfolio manager in charge of Japan, also recently left the company, according to regulatory filings.

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