Hong Kong’s Richland Capital Management Shuts Two Hedge Funds

Richland Capital Management Ltd., a Hong Kong-based asset manager set up in 2006, is closing down its two hedge funds, said Chief Investment Officer Alex Au.

Richland has sold all the stocks in the Richland Asia Absolute Return Fund and the Richland Emerging Opportunities Fund, he said in a telephone interview today. He declined to give a reason for the decision taken a month ago.

The two funds managed about $120 million as of March 2012, according to data compiled by Bloomberg. Au declined to give more recent asset figures. Richland also advises investments for private clients and a decision has yet to be made on the future of that business, he added.

Hedge fund liquidations globally hit a post-2009 high of 873 last year as investors directed the bulk of new money to the largest companies in the $2.4 trillion industry, according to Chicago-based Hedge Fund Research Inc. Managers overseeing at least $5 billion drew two-thirds of the $15 billion of fresh capital in the first quarter, it said.

Richland Asia Absolute Return Fund returned 6.3 percent this year through March, according to data compiled by Bloomberg. The pool that bets on rising and falling stocks without taking a view on market direction has generated positive annual performance in each full year since its December 2006 inception, the data showed.

Richland Emerging Opportunities Fund, set up in 2007 with a focus on China, gained 18 percent this year through March and 13 percent last year, according to data compiled by Bloomberg. It made money in two of the last five full years, according to the data.

Asia-focused hedge funds returned an average 5.8 percent in the first quarter and 10 percent last year, according to Singapore-based data provider Eurekahedge Pte.

Reuters reported Richland’s fund liquidation earlier today.

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