Axiom Investment Management, a Hong Kong-based asset manager with USD70 million under management, is considering investing in equity-linked notes for its USD7 million emerging markets hedge fund in the coming months, according to Jess Au, analyst in Hong Kong. The fund has used equity-linked notes and over-the-counter options in the past but focuses primarily on long/short equity plays, noted Au. She continued that if the Hong Kong market turns around in the coming months, it will consider investing in bullish equity-linked notes to capture upside gains on single-stock domestic names. Au declined to elaborate on specific products.
Axiom would likely invest up to USD1 million in such notes. Likely counterparties include Morgan Stanley and UBS Warburg, said Au. Pricing and yield are the most important investment factors for the fund.
