China Looks to the US for Chinese Equity Strategy, WaveFront Capital Landmark Partnership
In a groundbreaking agreement, WaveFront Capital Management, a US-based investment manager chaired by renowned economist Dr. Burton Malkiel, is pleased to announce that it has entered into a joint venture with Shanghai-based Fortune SGAM Fund Management Co., Ltd. to sub-advise a China-focused equity strategy on behalf Chinese investors.
Fortune SGAM is a fund management subsidiary of Hwabao Trust Co., Ltd., which is owned in partnership by China's Baosteel Group and France's Société Générale, and is one of the first fund management joint ventures in China.
“They [the Chinese] have recognized that while a quantitative approach to investing in their country’s public markets can add value, it is still a relatively new and untested approach for them,” said Dr. Malkiel. “Meanwhile, WaveFront has been applying this type of strategy in China since 2009 very successfully. The partnership makes sense for both parties involved.”
Focused on the Chinese A-share market, WaveFront will employ a quantitative equity strategy designed to provide 'intelligent' exposure to the long-term economic growth potential in China, while seeking to consistently outperform the CSI 300 index.
“We continue to believe that despite near-term challenges, the long-term growth potential in China remains strong. WaveFront is excited to offer a product that provides Chinese investors access to more intelligent exposure to their domestic equity markets” commented Mark Adams, Co-Founder and Portfolio Manager at WaveFront. “This new partnership provides us with a unique presence in China, possibly the first of its kind, and is a proof statement with regard to a strategy that we have been pursuing successfully for almost 7 years.”
Keith Abell, Co-Founder of Sungate Asset Management and a member of WaveFront's advisory board said "As Chinese investors seek diversification of their portfolios, they are not only looking at global securities, but also at new, sophisticated investment strategies that can be applied in their on-shore markets."
About WaveFront
WaveFront Capital Management is a San Francisco based investment management firm specializing in quantitative strategies that provide exposure to the public equities of both the broader emerging markets and individual countries. For more information on WaveFront Capital, please visit: http://www.wavefrontcap.com
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