As ESG is becoming the new pillar of asset allocation, major institutional investors in the region share insights on how to incorporate ESG in investments in a webinar organised by Natixis Investment Managers in partnership with AsianInvestor.
In a rare occurrence, Morgan Stanley Investment Management acquired a stake in the start-up. Hsu remains a major shareholder of Abax.
Hsu was formerly a managing director of the special-situations group at Citadel in Hong Kong before establishing Abax along with three partners: Donald Yang, Abax's president and former head of Hong Kong and China debt capital markets at Merrill Lynch; Danny Yong, CIO and former Citadel managing director who was responsible for founding its Asia relative-value and macro teams; and Frank Qian, chief risk officer and also a former founding member of Citadel's Asia business.
The fund launched with $300 million, which while quite an achievement, actually disappointed some observers who thought that Abax might bring in more than $1 billion in its first drawdown. Its first cornerstone investment was a stake in a pulp and paper plant in Indonesia. That took place shortly after establishment and it is safe to calculate that going long in Indonesia in mid-2007 can't make for a rosy mark-to-market picture in late 2008.
When the fund launched, AsianInvestor drew attention to the envy voiced in some corners of the hedge fund community towards Hsu û a wunderkind who was just 26 when he founded the fund. Never a warm and fuzzy industry, those people might feel a sense of schadenfreude today.
As Hsu still has two years to go before he reaches the age of 30, a comeback can't be long in the offing.
The valuation gap and earnings growth potential pose opportunities in European equities, particularly in cyclical industrials and ESG themes.
The National Pension Service believes better governance and a more consistent strategy will be the results of keeping its chief investment officer in place - and industry experts agree.
Gold, commodities and real estate are among the asset classes that investors should consider as hedges against inflation, but knowing when to get out is key.
Capital raised will go to specific projects or assets, which will appeal to impact-oriented investors, a Fitch report finds.