John Ho's Investment Strategy Pays Off

06 January, 2012

Janchor Partners, the Asia-focused hedge fund set up by John Ho, the former Asian head of The Children’s Investment Fund, has achieved another year of positive performance at a time when many of his rivals are losing money.

Mr Ho is up 8.6 per cent for 2011, a year in which the average Asian long short manager was down 10 per cent, according to preliminary calculations from Eurekahedge. That follows even more stellar performance in 2010, when his fund was up 35.5 per cent.

Mr Ho had many of the same investment theses as his peers, but in playing them he managed to pick winners on both the long and short sides. One of the big themes of the past few years has been consumption in China. But playing that thesis has proved perilous.

One of Mr Ho’s favourite trades, for example, was a long position in the shares of Swiss luxury brand owner Compagnie Financière Richemont, which produces goods such as Cartier jewellery and Baume & Mercier watches in a deflationary Europe to sell to the increasingly wealthy consumers of China. (Indeed the majority of both sales and profits come from Asia or Asian consumers travelling abroad.)

That position was balanced with a negative bet on a retailer with the reverse dynamic – it produces in inflationary China and sells in deflationary Europe. Both sides of that trade proved lucrative.

“John has a strong track record, he knows how to play liquid Asian equities across sectors while sizing his positions right,” says Soofian Zuberi, head of global markets sales for Bank of America Merrill Lynch in Hong Kong. Mr Zuberi notes for example that several fund managers were caught out by sharp falls in Asian equities in 2011 and reduced liquidity made it harder for many of them to exit their positions.

Mr Ho follows more of a long-term investment strategy with much of his money having a three-year lock-up. Unusually, his management fees drop as his fund grows, a feature he adopted to reassure investors he will focus more on returns than the amount under management.

A native of Hong Kong, Mr Ho spent two years at Citadel Investment and five years running the Asian operations of The Children’s Investment Fund before launching his hedge fund in 2010, one of many from local talent in the last several years.

More News From Financial Times

Pentagon To Focus On China And Mideast

Seoul And Tokyo Seek To Ease Iran Oil Ties

Worries Grow As China Land Sales Slump

US Private Sector Adds Jobs In December

Woodford Abandons Bid To Lead Olympus 

 

 


Leave Your Comment
Singapore's Temasek: Evolution Not Revolution

Singapore’s Temasek: Evolution Not Revolution

Reuters 5 years ago
Temasek Holdings, the smaller but more visible of Singapore’s two sovereign funds, is moving into a new phase with its investment strategy, and could look...
Hedge Fund Pioneer Back For Asia Venture

Hedge Fund Pioneer Back For Asia Venture

Sam Jones / FT 6 years ago
William Bollinger, one of the pioneers of London’s hedge fund industry, has come out of retirement to launch a new venture – in Singapore. A...
Star Stock Pickers Struggle To Beat Index

Star Stock Pickers Struggle To Beat Index

VCC Staff 6 years ago
To say that 2011 has severely tested the world’s most high profile of investors is no exaggeration. The likes of Fidelity’s Anthony Bolton, Pimco’s Bill...
No Comments

John Ho's Investment Strategy Pays Off

Powered by WordPress.com VIP