2016’s Most Innovative Hedge Fund Manager – Hong Kong
Gen2 Partners (“Gen2”) is one of the leaders in customised Asian hedge funds for institutional investors and family offices. We spoke to them to find out more about their highly innovate fund strategies, and how they have achieved continued success.
We are one of the most renowned alternative investment firms in Asia, and our senior investment professionals provide our investors with a wealth of experience and expertise in this field. We began our company in 2008, and in spite of being born during the Global Financial Crisis, have continued to go from strength to strength. In 2010, the company raised its debut fund the KS Asia Absolute Return Fund at the BNP Paribas Innocap platform which has Middle East Sovereign Fund seeded $100m as an anchor investor. Moreover, KS Korea Credit Fund was launched in 2010 which was seeded by sovereign Korean Pension Fund and now has grown to more than $100m.
When looking back upon our success, we believe that there are a number of reasons behind the continued growth of our company. Firstly, we have a proven track record in following the same successful investment strategy. Our Partner Kyle Shin was the head of Kingdon Capital Korea, and is one of the first Korean national to set up a hedge fund in Asia who has hedge fund experience in tier 1 hedge fund, Kingdon Capital Management.
Across our firm, the investment professionals in the Gen2 hedge fund team have a diverse set of backgrounds. The majority joined the team after successful careers in some of the world’s leading financial institutions. Others are extraordinarily gifted professionals who would like to work in an environment where they can flourish. They offer a diversity of input from the market with extensive local network, with close proximity to company executives and decision makers who are influential in the future economic landscape of Asia.
Alongside this expertise, we have an unsurpassed knowledge of Asian hedge funds, and we typically meet and have conference calls on a one-on-one basis to generate market ideas. In terms of our ethos, we would consider ourselves a very people-orientated firm and communication really is at the heart of everything we do. We have a dedicated team of senior partners focused on investor relations. We seek out feedback from our investors on our reporting, transparency and accessibility.
We understand that every client is different, which is why our investment opportunities are highly customised. We have an unsurpassed ability among our peers to tailor fund solutions for our clients. Moreover, any of our single strategy funds have been created at the request / suggestion of our pension, institutional and wealth management clients.
Furthermore, another differentiating factor is our proprietary risk management system. This system constantly monitors investment breaches by our Portfolio Managers. As such, our independent risk monitor firm and in-house risk team together produces monthly risk reports using state of the art risk management system, IMAGINE, that many of global banks and asset managers relying on. Risk teams produce more than 30 different kinds of risk reports per fund and tracks over factors, including VAR (Value at Risk), scenario analysis, sensitivity analysis, cross correlations, underlying asset performance, risk factor exposure (equity, fixed income and country risks), P/L attribution, liquidity analysis, tracking versus our peer group, etc.
To cope with investors’ needs, our founding partner and CEO, Kyle Shin, is in process to set up on-shore hedge fund management firm in Korea to better service Korean institutional clients and potentially bring more talents who can contribute to generate alpha and achieve absolute returns regardless of market directions.
Ultimately, our culture successfully combines an entrepreneurial partnership structure with a disciplined institutional investment process. We align the interests of the investment team with our investors as much as possible.
As for the award, we are delighted to be recognised as ‘2016’s Most Innovative Hedge Fund Manager’ and is further evidence of our success. Prior to this achievement, we were winners in Acquisition International’s Hedge Fund Awards in 2015 and 2016, so it is wonderful to receive further recognition of the work we are doing. We hope to build on our success and continue to deliver exceptional results in the future.