1 Abax global capital Plans Managed Buyout Fund After 28% Hedge Fund Gain in20112012-02-15 Feb. 15 (Bloomberg) -- Abax Global Capital, a Morgan Stanley-backed manager of$900 million of hedge and private equity funds, plans to start a fund this year to invest inU.S.-listed Chinese companies that will be taken private. Abax global capital is seeking $300 million initially for the fund, which it may start inthe first half, Donald Yang, its Hong Kong-based managing partner, said in an interviewyesterday. Such investments, including in Harbin Electric Inc., helped the $300 millionAbax global capital special situations fund return 28 percent last year. Managers like Abax global capital are planning funds with multi-year restrictions onredemptions to enable longer-term investments. Swings in frequently traded assets andthe high correlation between different markets led to hedge funds second-worst annualperformance last year since at least 1990, according to data tracked by Chicago-basedHedge Fund Research Inc. "Its very hard for a pure public strategy in this market," said Yang. "From a risk-reward point of view, its going to be a very challenging market for equities, probablymore downside than upside. Credits are the same story." The HFRI Fund-Weighted Composite Index declined 5 percent last year. The Abax global capital special situations fund bets on companies in Asia, especiallyin China, whose debt and equity prices move as a result of mergers, hostile takeovers,asset sales and large share buybacks. It returned 21 percent in the fourth quarter, Yang said. The majority of the profitscame from actual or mark-to-marketgains from deals involving U.S.-listed Chinese firms being taken private, such as thecompletion of the management buyouts of Harbin Electric and China Security &Surveillance Technology Inc. U.S. Investigations Valuations of smaller Chinese manufacturing companies traded in the U.S. plummetedafter the global financial crisis. The market value of U.S.-listed Chinese companies hastumbled since November 2010 amid allegations of financial fraud by short sellers such asMuddy Waters Research. The USX China Index, which tracks the performance of U.S.-listed companies thatderive most of their revenue from China, has declined 18 percent in the last 12 months.Shares of Sino-Forest Corp., facing allegations from Muddy Waters it had exaggerated itstimber assets and operated a Ponzi scheme, have lost 94 percent since the end of 2010 in
U.S. over-the-countertrading. U.S. regulatory investigations since 2010 into accounting practices of Chinesecompanies that gained listing on American exchanges through reverse mergers alsodamped share prices. Going Private In some of the funds investments in the privatization of U.S.-listed Chinesecompanies, such as Harbin Electric, Abax global capital turned its public equity holdingsinto private equity investments, said Yang. Abax global capital has held talks with Chinese private investors about the dedicatedfund to invest in U.S.-listed Chinese companies being taken private, said Yang. Investorsin the fund, which will be available to international investors and Chinese citizens withoffshore accounts, will commit their money for at least five years, he added. The planned fund will surpass a $50 million managed account set up last year for asmall group of investors, which makes similar investments together with the Abax globalcapital special situations fund, said Yang. Abax global capital s other investments in U.S.-listed Chinese companies being takenprivate include Fushi Copperweld Inc. Taking Private Seventeen deals to take U.S.-Chinese companies private have been announced since2009, and seven have been completed so far, according to data compiled by Bloomberg. The shortage of bank financing amid the European debt crisis has made it difficult toarrange such deals, because the investors will have to negotiate a lower price to achievethe same expected returns without leverage, said Yang. Private equity investors trying to strike deals without leverage may also find it hard tonegotiate with chief executiveofficers, who are typically majority stakeholders, Yang said. The size of the investmentsrequired to complete a privatization would probably dilute the CEOs holdings and resultin the outside buyers taking majority stakes in the companies. Real-Estate Fund Most of the assets in the Abax global capital special situations fund are in privatelynegotiated debt and equity securities, includingfixed-income, structured loans and private equity types of investments, Yang said. Abax global capital is also planning to start a fund for investments in Chinese real-
estate projects in partnership with former Beijing-based Merrill Lynch & Co. real-estatefund investment professionals led by Greg Peng, Yang said. It will raise yuan capitalfrom Chinese investors and will target returns of 25 percent to 35 percent from theinvestments, Yang said. Chinese investors have committed about 1 billion yuan ($159million) to the fund,which is going through businessregistration and may hold its first close by the second quarter, Yang said.2 Two Nominations for Abax global capital at Eurekahedge Asian Hedge FundAwards2012-04-16 06:06pmAbax Global Capitals exceptional performance has resulted in two nominations for the2012 Eurekahedge Asian Hedge Fund Awards. The finalists will be announced on May25.Abax global capital is pleased to have been nominated for the Best Greater China HedgeFund and Best Event Driven Hedge Fund award categories. We are gratified that ourcommitment to delivering outstanding returns to investors is being recognized in theinvestment community.3 Abax global capital Seeks Chinese Companies Abandoning U.S. Listings2011-05-18 00:59:03.581 GMTBy Bei HuMay 18 (Bloomberg) -- Abax Global Capital, a Morgan Stanley-backed manager of $900million of hedge and private equity funds, is seeking to profit from Chinese companiesabandoning U.S. listings for higher valuations in Hong Kong.Abax global capital has invested in companies including Harbin Electric Inc. and FushiCopperweld Inc., which are seeking delisting from the U.S. in leveraged managementbuyouts and may go public in Hong Kong later, Donald Yang, Abax global capital’sHong Kong-based managing partner, said in an interview yesterday.Valuations of smaller Chinese manufacturing companies listed in the U.S. haveplummeted after the global financial crisis, with the collapse of their traditional investorbase of smaller U.S.-based hedge funds and individuals, said Yang.
U.S. regulatory investigations since last year into accounting practices of Chinesecompanies that gained listing on American exchanges through reverse mergers alsodamped share prices."Their traditional investor base is gone," he said. "But you can pick out quite a fewcompanies in the space where the business fundamentals are very solid."One hundred and twenty-nine Chinese companies listed in the U.S. trade at an averageeight times their estimated 2012 earnings, against 11 times for 276 peers traded in HongKong because of a lack of research coverage, high concentration of shares among theirmajor shareholders, and limited trading volume, according to data compiled by CitigroupInc.More than 3,200 hedge funds have been liquidated between 2008 and last year, 36percent more than new starts, according to Chicago-based Hedge Fund Research Inc.Reverse MergersThe U.S. Securities and Exchange Commission last year started a probe amid concernsthat some Chinese companies listed in the U.S. were doctoring their financial statements.U.S. exchanges have frozen or delisted shares of more than a dozen China-based firmssince March amid the probes centered on those that have obtained listings throughreverse mergers -- deals in which a closely held firm goes public by acquiring a tradedone, thereby avoiding the scrutiny of an initial public offering.Abax global capital is making the investments through Abax global capital OpportunitiesFund and separate accounts for clients which together oversee $350 million using thesame strategy. The fund bets on companies in Asia, especially mainland China, whosedebt and equity prices will move as a result of mergers, hostile takeovers, asset sales andlarge share buybacks.Attractive Returns"I think this is going to be the focus for the next couple of years at least," Yang, 45, said."It’s a good investment thesis."These companies provide more attractive returns than the traditional Chinese targets ofprivate equity funds because they are larger in scale, have more established businessoperations and better internal controls. They are also valued cheaper and investors couldrecoup their money sooner, Yang said.Abax global capital is focusing on companies that it has provided financing to before andis therefore familiar with, Yang said.
It expects to recoup such investments in less than two years, including the typical six-month ban on sales of pre-IPO investments after trading starts, he said. It can also sell theinvestments to private equity companies.Abax global capital Opportunities Fund returned just more than 2 percent this year, and20 percent in 2010, Yang said. It exited about 80 percent of pre-2008 investments withabout 12 percent annual returns, either when the loans matured or when the companiespaid it back before maturity after obtaining alternative sources of funding at lower rates,he said.Fund RestructureAbax global capital earlier this year restructured its special situations fund by creatingtwo share classes, one with a two-year ban on withdrawals in exchange for fee discounts,and one that allows quarterly redemption that charges higher fees.Investors were subject to a one-year outright ban on withdrawals and penalties forredemptions in the next two years when the fund was set up in 2007, said Yang.The more frequent redemptions are to help attract U.S. and European investors who havebeen reluctant to put money into less liquid funds since the crisis while allowing Abaxglobal capital to make longer-term private investments with higher returns, he said.Chinese individuals and institutions now account for the majority of its assets, Yang said.Abax global capital started a 500 million yuan ($77 million) private equity funddenominated in the Chinese currency early last year, with China Development BankCorp. as its anchor investor.It is also setting up a venture with the Chinese bank to manage another private equityfund that is expected to receive as much as 4 billion yuan of commitments from mostlyinstitutional investors, Yang said. The venture, which has received government approvaland is going through the registration process, may become operational in the next twomonths.4 2010 Asia Hedge Fund 25- Abax global capital2010-08-10Abax global capital is listed again in influential Institutional Investors "Asia HedgeFund 25" climbing to No. 22 from No. 23 of 2009 list. Visit Institutional Investors orclick the icon at top right corner to download the pdf file.
5 Abax global capital Follows CLSA With Chinese Private Equity Fund2009-08-24By Bei HuAug. 24 (Bloomberg) -- Abax Global Capital Ltd., a Hong Kong-based hedge fundmanager backed by Morgan Stanley, plans to start a private equity fund in China thatinvests in companies making environmentally friendly products such as clean energy.The yuan-denominated fund aims to raise about 500 million yuan ($73 million) fromChinese investors by its first close in two months, Donald Yang, Abax global capital’sHong Kong-based president, said in a phone interview Aug. 21. It will be sponsored by alarge Chinese financial institution, whose name he declined to reveal because of pendingregulatory reviews of the plan.International managers such as Blackstone Group LP and CLSA Asia-Pacific Markets arealso planning to tap Chinese demand for local-currency private equity funds. Abax globalcapital is joining peers such as Income Partners Asset Management (HK) Ltd. that arediversifying their product range and investor base after the worst year for hedge funds in2008.“Money is tight, so people will raise assets where they can,” said Paul Smith, HongKong-based managing director at Triple A Partners Ltd., which provides startup capital tohedge funds and helps market them. “Everyone is having to learn new tricks to stayafloat.”Abax global capital, set up in 2007, initially focused on so-called special situationsinvestments in companies involved in events such as mergers, acquisitions, asset salesand large share buybacks.“Last year, most participants in the industry felt significant pain during the marketturmoil,” said Yang. “From a business point of view, having a single strategy is risky.What we’re trying to do is to build a platform with multiple strategies.”Convertible BondsAbax global capital’s $300 million special situations fund, which invests mainly inconvertible bonds, notes and equity warrants, booked double-digital returns this year ascredit markets rebounded and the quality of the company credits it holds strengthened,Yang said without giving specific numbers.The fund was down “significantly” last year after the credit market slump forced it tomark down the value of its holdings, said Yang, declining to give a more specificperformance number. The illiquidity of the fund’s private investments made it difficult tovalue and sell the assets at attractive prices when the market collapsed, he added.Income Partners, which oversaw debt and macro assets, started its first equity hedgefunds in July.
Raising MoneyAbax global capital in January raised about $50 million from a small group of wealthyChinese individuals for funds that focus on publicly issued, frequently traded high-yieldand convertible bonds, Yang said. The funds have returned at least 30 percent sinceinception, profiting from the doubling of some companies’ bond prices since mid-March,he added.“We were lucky enough to raise capital at the beginning of the year and chose attractivepositions that benefited from the up trend of the credit market,” Yang said. “Otherwise, ifyou are holding positions that you bought a year or two ago, you may not haveexperienced as much of the overall benefit in the recovery.”Neo-China Land Group (Holdings) Ltd.’s convertible bonds maturing in June 2011traded as low as 22 cents on the dollar in February after missing a coupon payment on$400 million of high- yield bonds in January. The convertible bonds have recovered to62.5 cents, according to data compiled by Bloomberg.Hopson Development Holdings Ltd.’s convertible bonds maturing next year rose from32.3 cents in November to 96.8 cents on the dollar, according to Bloomberg data.New HiresAbax global capital, which manages about $560 million, also opened its TudorInvestment Corp.-backed Asia macro fund, which seeks to profit from regional economictrends, to outside investors for the first time.Abax global capital is hiring at least three people for the Chinese private equity fund, saidYang, who helped found Abax global capital and was a former head of Hong Kong andGreater China debt capital markets at Merrill Lynch & Co. Abax global capital’s specialsituations team will assist the fund’s management, Yang said.6 Abax global capital 拟在华设立私募投资基金 专注环保公司2009-08-27来源：ChinaVenture 时间：2009-8-27 14:56:00 据海外媒体报道，摩根士丹利支持下的香港对冲基金管理公司 Abax GlobalCapital 计划在中国推出私募股权投资基金，将重点投资致力于制造清洁环保产品的公司。 Abax Global Capital 香港总裁 Donald Yang 在 8 月 21 日的采访中表示，AbaxGlobal Capital 希望此基金首轮募资 5 亿元人民币（约 7300 万美元）将向中国投资者募集，于两个月内完成。该基金将引入一家大型中资金融机构资金，目前尚 未公布此机构的名称。公司将至少雇佣了 3 名中国管理者筹备此次基金，Abax global
capital 的特殊情况团队也将为基金管理提供帮助。 Abax Global Capital 成立于 2007 年，主营重大事件相关的特殊情况投资，比如：合并、收购、资产售出和大量股份回购。Abax global capital 的 3 亿美元基金主要用来投资可转债，票据和股票凭证。7 盘实基金(Abax global capital)：现在投资债券比投资股票机会更好http://www.sina.com.cn 2009 年 06 月 10 日 02:23 第一财经日报 郭茹 王艳伟 “危机”既是“危”，更是“机”。自 2008 年以来，这场起始于美国的国际金融危机给金融市场造成了巨大的冲击。而在盘实基金（Abax Global Capital）总裁杨向东看来，在反思这场危机的同时，更要积极寻找危机所带来的投资机会。 在这场危机中盘实基金虽然也遭受了损失，但以结构性债券产品投资为主的投资策略却使他们幸存了下来。而今年以来他们又将眼光瞄向了高收益的债券市场， 抓住了这场危机中的机会。盘实基金于 2007 年在香港成立，有“中国人办的第一家对冲基金”之称，也是摩根士丹利所投资的为数不多的几家基金管理公司之 一。 日前，CBN 记者采访了该基金创始人兼总裁杨向东。 亚洲债市动荡更大 CBN：能否简单介绍一下公司的主要投资模式？ 杨向东：盘实基金成立伊始的 2007 年 7 月，正值上一轮“牛市”的顶峰。基金的投资策略是结合了债权、股权及期权的结构性私募投资，在追求高回报的同时，强调风险控制及在市场低潮时对投资价值的保值。这种在国际对冲基金被称为“特殊情况”（Special Situation）的投资在当时市场环境下极具吸引力，也是摩根士丹利决定成为基金的初始投资人并在管理公司中占有少数股份的主要原因。今年年初，我们 确信经历了金融危机洗礼的亚洲债券市场极具投资价值，并募集了新的基金，迄今回报率已经达到了近 30%。 CBN：国内对海外的债券市场并不太了解，近几年亚洲债券市场的情况是怎样的？
险投资基金工作过一年，曾来哈尔滨考察过很多项目。中能董事长邓天洲认为杨“眼光敏锐、效率高、（投资）方式灵活”。目前盘实已投资的行业有天然气、城市燃气、经济型连锁酒店、房地产、制造业、造纸业、水处理等。不过与 VC/PE 不同的是，盘实会同时投资同一行业的多家同类公司。比如在投资完中能国际后，盘实又紧接着投资了同属于天然气加油和汽车气化改造市场的西安西蓝天然气股份有限公司。杨自称比较喜欢该行业，认为其带有公用事业性质，又属于环保类的石油替代品。而盘实目前所聚焦的公司是红筹公司，包括上市公司和拟上市公司。他解释道，这类公司的债务融资无需发改委审批。盘实的投资形式基本上都是“无担保长期债+可转债”，以私募为主。对企业投资后，盘实一般都会要求其选择大的会计师事务所、大的律师事务所等，对 OTCBB 公司则要限期转板纳斯达克。同时，盘实也会在资本、公司运营等方面尽力帮助企业。对于这个年轻的团队来说，从事这样一个“前沿”的工作，也存在风险。在多次接受电话采访后，杨向东期望着越来越多的人加入到“债权+股权”的投资中来，只专注于“债权+股权”的基金还不多。9 Morgan Stanley Investment Management Reaches Agreement to Acquire Stakein Abax Global Capital Limited2007-03-12Newly Formed Firm Will Invest in Asian Special Situations with Focus on Greater ChinaHONG KONG, March 12, 2007 Morgan Stanley (NYSE: MS) announced today that itsInvestment Management division (MSIM) has reached an agreement to take a significantminority ownership position in Abax Global Capital Limited (Abax global capital), a newhedge fund advisor being formed to invest in special situations in Asia. The transactionadds Abax global capital to the stable of best-inclass independent investment managerswith whom MSIM collaborates, including Avenue Capital, Lansdowne Partners andTraxis Partners.Abax global capital, to be headquartered in Hong Kong, will invest in private and public-sector issuers in Asia, with a primary focus on Greater China, including mainland China,Taiwan and Hong Kong. The firm is being founded by Chris Hsu, a former managingdirector at Citadel Group, with responsibility for that firm multi-billion dollar SpecialSituations Asia Group; Donald Yang, formerly managing director and head of HongKong and Greater China debt capital markets at Merrill Lynch; and Frank Qian, formerlya trader and risk manager in Asia, Europe and the U.S. at Citadel Group.
Hans Schuettler, Chief Executive Officer, Morgan Stanley Asia, said, the Asian capitalmarkets provide exciting opportunities for growth that we are well positioned to realizegiven our Firm deep roots and strong platform in the region. As part of the strategy togrow our asset management business in Asia, with a specific focus on China, we areexpanding the range of investment strategies we offer to both our institutional and ourhigh net worth individual clients. And, this new alliance with Abax global capital willprovide our clients access to investment expertise in a distinctive, highly attractive assetcategory.Stu Bohart, Head of Alternative Investments at MSIM, said, the continue to expand thebreadth and depth of our investment offerings to accommodate clients desire forinnovation and high performance across a broad range of traditional and alternative assetcategories. Abax global capital team, led by Chris Hsu, Donald Yang and Frank Qian, ishighly regarded and has an outstanding track record in Asian capital markets. With itsunique, integrated investment platform and its extraordinary level of talent, Abax globalcapital will be another significant enhancement to our alternative product offering.Chris Hsu, Chief Executive Officer and Managing Partner of Abax global capital said,they are very pleased to be entering a strategic partnership with Morgan StanleyInvestment Management. The firm support will be highly beneficial as we work togetherto identify the most promising investment opportunities presented by the rapid growth ofAsian capital markets. We believe that combining forces in this way will provide aplatform for meaningful collaboration between the companies.In recent months, MSIM has expanded its alternative investment capability through aseries of new products, partnerships and investments. In addition to launching 24 newalternative investment products in fiscal 2006, the Firm acquired FrontPoint Partners, amulti-strategy hedge fund business that focuses on providing alpha producing solutions toinstitutional clients.About Morgan Stanley Investment ManagementMorgan Stanley Investment Management, together with its investment advisory affiliates,has over 400 investment professionals around the world and $478 billion in assets undermanagement or supervision as of November 30, 2006. These entities offer investmentmanagement services to a diverse client base, which includes governments, institutions,corporations and individuals.About Morgan StanleyMorgan Stanley is a leading global financial services firm providing a wide range ofinvestment banking, securities, investment management, wealth management and creditservices. The Firms 2 employees serve clients worldwide including corporations,governments, institutions and individuals from more than 600 offices in 30 countries. Forfurther information about Morgan Stanley, please visit www.morganstanley.com.
10 摩根斯坦利投资亚洲对冲基金 Abax global capitalhttp://www.sina.com.cn 2007 年 03 月 19 日 03:55 中国证券网-上海证券报 摩根斯坦利表示将购买 Abax Global Capital Ltd 的一部分股份。Abax globalcapital 是一家投资于亚洲的新兴对冲基金，由 Citadel 投资公司的前管理人士设立。摩根斯坦利表示，它的投资管理团队将在 Abax global capital 基金中，占据显著的所有者监控职位。 Abax global capital 的创始人包括 Chris Hsu，Citadel 对冲基金的前常务董事。他将负责对中国大陆、台湾与香港等地的投资。 Abax global capital 将专注于所谓“特殊情境”投资，设定公司的债务与股本将随着兼并，恶意收购，资产拆分或 buyout 而产生变化。根据 Eurekahedge 数据，投资亚洲的对冲基金去年产生了 16.1%的资产回报率，北美市场的回报率是11.5%，欧洲是 11.35%。（阿焰）