Asia Hedge Funds Bought Shares of Sanctioned China Mobile Firms
- Long Corridor, three peers bought shares as index funds dumped
- Hedge funds were lured by high dividend yields, undervaluation
Pedestrian wearing protective masks walk past advertisements at a China Mobile Ltd. store in Hong Kong.
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Asia hedge funds including Long Corridor Asset Management Ltd. bought shares of sanctioned Chinese telecommunications operators, trading against a market sell-off.
Long Corridor acquired a small amount of shares, Hong Kong-based Chief Investment Officer James Tu said. At least three other Asia-based managers also purchased shares, lured by handsome dividend yields offered by the already undervalued stocks, said people with knowledge of the matter, who requested not to be named because the matter is private. The four hedge funds manage about $8 billion collectively.