LHG Capital Surpasses $1 Billion in AUM, Hikes China Macro Fund Fees to 25%

HONG KONG, HONG KONG SAR, January 17, 2023 /EINPresswire.com/ -- After receiving record inflows¹ in 2022, macro hedge fund LHG Capital Management² (LHG) has just surpassed US$1 billion in assets under management (AUM), further consolidating its position as one of the largest pure-play global macro hedge funds in the Asia-Pacific region. Due to strong demand, in January, the firm’s management team announced plans to hike the performance fee of its USD-denominated China macro fund from 20% to 25%.

The hedge fund firm’s China Macro strategy³, a niche CTA strategy focused on investing in Chinese futures markets, previously had a hard cap of $200 million across its two commingled funds (offshore USD and onshore CNY). In early January, LHG’s investment committee decided to increase the cap to $350 million. Within two weeks, pent-up investor demands and previous oversubscriptions filled up the $150 million gap, pushing the firm’s total AUM to over $1 billion.

Currently, the strategy is once again oversubscribed and closed to outside investors.

Launched in February 2021, LH China Opportunities Fund, the strategy’s USD-denominated fund, delivered a record-breaking 64.7% return before fees in 2022, with a maximum drawdown of -9.89%.

Due to strong investor demands, in January, LHG’s management team increased the minimum investment amount of its offshore China fund from $5 million to $12 million, effective immediately. Meanwhile, the fund’s performance fee will be hiked from 20% to 25% starting February 1. The 2% management fee arrangement remains unchanged.

Unlike most of its “billion-dollar club” peers, LHG is one of the very few hedge funds that have successfully grown assets without institutional or fund of hedge fund money. Instead, the firm raised the majority of its assets from family offices, ultra-high-net-worth individuals, and private companies.

LHG runs two macro strategies, Diversified Global Macro and China Macro, and invests in a broad range of highly liquid financial instruments across asset classes, currencies, and geographies.


About LHG Capital Management
LHG Capital Management is one of the largest hedge funds dedicated exclusively to global macro investment strategies in the Asia-Pacific region. The firm is headquartered in Hong Kong and Zürich, with representative offices in Abu Dhabi, Beijing and Sydney.

LHG's macro strategies employ a top-down, quantamental (quantitative + fundamental) research-driven process to invest in highly liquid financial instruments across asset classes, currencies and geographies. Its multi-process investment approach combines traditional macro fundamental and relative value analysis with modern-day quantitative analysis powered by supercomputers, machine learning and big data.

Sean Burton
LHG Capital Management
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¹ https://www.hedgeweek.com/2022/08/19/316873/record-inflows-macro-hedge-fund-lhg-capital-push-aum-over-750m
² http://www.lhgcm.com
³ https://www.lhgcm.com/strategies