GEMS – Mahjong China - NS Partners GroupNS Partners Group

Fund profile

Long / Short Equity multi-manager fund investing in Greater China
Long/Short strategies are the best way to capture market inefficiencies that abound in the region
Alternative to Active Long Only or Passive strategies when investing in the region
Investment objective: to deliver above average returns over time while maintaining a lower risk profile than conventional investments
Expected return: outperform the China Equity Market over a full market cycle
Expected volatility: ~1/2 of the MSCI China Index
Expected exposure: Net = ~30%-60%. Gross = ~110- 170%
Upside/downside: 2/3 of the upside and 1/3 of the upside with limited drawdowns
Monthly liquidity

Investment universe: established Long / Short Equity Hedge Fund managers with a proven long track-record and based locally (mainly Singapore and Hong Kong)
Geographic exposure: mainly “Greater China” China, including A-shares, B-shares, H-shares (Hong Kong) and ADRs
Investment style: diversification by type of strategies with a blend of variable net, low net and long biased managers
Portfolio: concentrated around 10-15 managers

High dispersion of returns between A shares, H shares and US ADRs
Less coverage of companies from sell side comparing to developed markets
Opening of the Chinese domestic market in recent years has led to new investment opportunities for investors
Indices are representing the past instead of the future but our underlying managers are adopting a dynamic approach, so they are able to generate Alpha returns

Started investing in the region at an early stage at the end of 1970s and followed the evolution of local Hedge Funds industry, moving from westerns to local PMs
Local PMs are more dynamic to take opportunities in the market.
We select locals managers with in-depth knowledge of the markets. All our managers are based in Asia (primarily in Hong Kong, Shanghai, Beijing and a few in Singapore)
All our underlying strategies are SFC (HK) regulated

Last update 16.01.2025

Focus on the “new China”, with emphasis on industry leaders that have true performance potentials and participating in China’s growth story
Access to all classes of shares in China including A-shares, B-shares, H-shares (Hong Kong) and ADRs
Investments in L/S Equity managers capturing opportunities in a market that is opening to foreign capital with high dispersion of returns
Great diversification to a global equity portfolio
Access to well-known established hedge fund managers with a proven long track-record
Long history and great experience investing in China, and an important network of contacts

“ For investors seeking an efficient exposure to the region, Mahjong China is a convincing alternative to Active Long Only or Passive strategies. ”