Quantitative hedge fund Meridian & Saturn Capital has stated it received a $1 billion mandate to trade Chinese stocks. This development serves as another indication that investors are increasing their allocations to the world's second-largest economy.
Kate Zhang, the fund's founding partner and CEO, mentioned in an interview that the Singapore-based firm will employ a market-neutral strategy for trading domestic Chinese equities.
Citing a non-disclosure agreement, Zhang declined to name the investing client but indicated it is a Middle Eastern sovereign wealth fund. She also noted that if performance targets are met, the sovereign wealth fund would consider making additional investments. Specific details of this investment arrangement could not be independently verified at this time.
Zhang added that MS Capital is currently in discussions with other Middle Eastern funds regarding potential investments and plans to open offices in Abu Dhabi, Hong Kong, and the United States to capitalize on emerging investment opportunities. The firm currently manages approximately $1.5 billion, which includes an initial $500 million investment from this Middle Eastern client.
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