China Hedge Funds Test 10-Year Lockups Eluding Wall Street
- Affluent investors prepared to look beyond losses this year
- Lockups exceed client commitments at global fund managers
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A new crop of hedge funds in China is seeking to achieve what’s eluded New York’s biggest money managers: getting wealthy individuals to invest for a decade or more.
After Beijing Hanhe Capital, which manages more than 10 billion yuan ($1.6 billion), tested waters last year by demanding a minimum six-year investment, another smaller player went further with a fund that freezes client cash for 15 years. While a rare example, that’s multiples the time commitment -- or lockup -- that global fund managers demand.