Former Pine River Manager Qian Said to Plan New China Hedge Fund

  • Frank Qian has set up Hong Kong-based Q Fund Management
  • He is said to be gauging demand for the long-short equity fund

Frank Qian, a former Hong Kong-based fund manager at Pine River Capital Management, is planning a new hedge fund that would focus on Chinese equities, according to three people briefed on the matter.

Qian set up Q Fund Management, according to a business registration document seen by Bloomberg. He is gauging demand for the fund, which will seek to profit on rising and falling stocks, said the people, who asked not to be identified because the information is private. Qian declined to comment through a text message.

China is in the throes of a market rout after signs of slowing growth in the world’s second-largest economy coincided with an unwinding of excessive stock market borrowings. New hedge fund launches in Asia declined in the first half of the year as investors started pulling back from riskier assets even before the market plunge.

The Shanghai Composite Index has fallen about 40 percent since a June peak, dividing investors into two camps: Those who predict deeper declines and those who see buying opportunities as valuations fall. The market turmoil hurt money managers who bet on rising stocks, and prompted authorities to crack down on practices in mainland China, such as short-selling. The Eurekahedge Greater China Hedge Fund Index declined 7.1 percent in August, cutting the gain for the first eight months of 2015 to 2.3 percent, according to Eurekahedge Pte.

Previous Career

Qian ceased to be a full-time employee of Pine River, the U.S. firm that manages $15.4 billion in assets, in March and stayed on as a consultant until June, another person with knowledge of the matter said. Pine River oversees about $1.2 billion in its two-year-old China fund, led by Hong Kong-based Dan Li. Qian had also previously been a trader and risk manager at billionaire-investor Kenneth Griffin’s Citadel.

This would be Qian’s second startup experience. He co-founded Abax Global Capital with former Citadel trader Chris Hsu and Donald Yang, who once headed Hong Kong and Greater China debt capital markets at Merrill Lynch & Co. The Hong Kong-based hedge fund firm, minority owned by Morgan Stanley’s asset management arm, opened in 2007 with $300 million. It used a so-called "special situations" strategy to invest in small and medium-sized Asian companies, with a focus on China, Taiwan and Hong Kong. Qian left Abax to join Pine River in 2012, according to a regulatory filing.

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