SBI China Provident Capital Management, a newly established pan-Asian hedge fund with some USD10 million under management in Hong Kong, is looking to purchase and sell credit derivatives for its multi-strategy portfolio. "It's part of our mandate," said Adrian Churn, cio in Hong Kong, adding, credit derivatives are part of the fund's strategy.
The fund, dubbed the SBI Asian Total Return Fund, which was launched in January, already uses equity derivatives, structured notes, currency derivatives, gold and silver derivatives, and asset swaps. It will look to enter credit-default swaps on Asian names in the coming weeks. "Our focus is intrinsic value," said Churn. He declined to elaborate on the potential size or strategy of the credit trades.
SBI's prime broker is Morgan Stanley. Nick Fotitt, spokesman at Morgan Stanley, did not return calls.
