Strategic China Panda Fund is a long-only equity fund investing predominantly in equities of the greater China region, including China, Taiwan, Singapore, and Hong Kong. Investment may be through direct equity exposure, but also indirectly through the use of equity swaps and other financial derivative instruments, including ETFs.
The strategy is primarily driven by bottom-up fundamental analysis to exploit market inefficiencies and mispricing, as well as to identify themes at early stages. The strategy retains the flexibility to be directional and allocate to high conviction ideas with strong minimum return requirements to justify investment. The Fund has an absolute return investment objective to outperform a risk free environment and therefore has a strong aversion to risk.
The Fund targets an absolute return, while outperforming the benchmark index. The Fund also aims to limit the volatility of the Fund and can invest in index futures for downside protection up to 100% of NAV. The Hurdle Rate is 6 Month LIBOR + 1.5%.