Investments

OPIM announces partnership with Hongcheng Capital to Launch Offshore Fund

OP Investment Management (OPIM), a leading fund platform, has announced that it has formed a partnership with Beijing Hongcheng Capital (Hongcheng Capital) to launch its first offshore fund, HC Capital.

The fund is reportedly Cayman-domiciled, and for professional investors only, according to a press release by OPIM.

Managed by Tao Zhang, Founder and Investment Director, Hongcheng Capital, he long-biased fund will invest in China-related equities listed in China, Hong Kong as well as American depositary receipts (ADRs) in the United States, says OPIM.

Targeting long-term absolute returns, the Fund leverages on the evinced multi-thematic strategy from the team's onshore flagship product, which combines dynamic sector rotation with bottom-up stocks selection analysis.

Established in April 2015, Hongcheng Capital has grown rapidly, now reportedly boasting an AUM of RMB8 billion, as of July 2020. Zhang brings over 18 years of investment experience in the China market to his new appointment. He was previously the Managing Director, an Investment Committee member, and Portfolio Manager at Harvest Fund Management.

“Quality China companies demonstrated their profit potential and ability in creating shareholder value amid economic restructuring. Along with the open-up of China's financial market, China has become more and more attractive to global investors. Hongcheng Capital's team and the strategy have survived multiple market cycles and proved its resiliency in different market environments. We believe now is the time to invest in China equities. We look forward to the offshore vehicle and are confident to achieve a respectable risk-adjusted return for investors,” said Zhang.

Alvin Fan, Chief Executive Officer, OPIM, said: “Hongcheng Capital is a great example of homegrown China pedigree. Mr. Zhang has successfully translated his buy-side experience from Harvest into a leading domestic manager. Allocators globally are rebalancing their books and looking seriously at how to access China's story through the impending recovery. We're very excited to be part of HC's launch.”