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Business Times
5 days ago
- Business
- Business Times
The rise and fall of New Silk Road, one of the longest-running hedge funds in Singapore
[SINGAPORE] Investment management firm New Silk Road announced earlier in July that it will be closing its doors after a 16-year run in Asia. Based in Singapore, it is one of the longest-running hedge funds in the city-state. It is the investment manager of the Asia Landmark Fund, which has onshore and offshore investment structures for US and international investors through a Cayman LP and Cayman offshore feeder fund. So what caused New Silk Road to shutter, and who are its founders? The Business Times explains, and also takes a look at what hedge funds are, and this industry in Singapore. The origins of New Silk Road, and who are its founders? Founded in 2009, the company was started by Raymond Goh, the former head of Asian equities at GIC, and Hoong Yik Luen, the former head of Hong Kong-China equity products at Deutsche Bank. New Silk Road in its early stages was considered a pioneer in the finance scene of Singapore. For context, the Republic's hedge fund market managed S$59 billion pre-2010s, which has since grown to S$327 billion as at December 2024, based on data from the Monetary Authority of Singapore (MAS). Goh and Hoong's hedge fund is known to be one of the earliest in Singapore to invest long-short equities across Asia. Its strength was being among the early foreign investors in China, via an on‑the‑ground Shanghai team. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Notably, the company received Qualified Foreign Institutional Investor access in 2012 to invest in Chinese yuan-denominated mainland Chinese stocks and bonds. At the time, fewer than 200 firms received such licences from the China Securities Regulatory Commission. This move attracted a large pool of US institutional investors seeking Asia-centric exposure for their portfolios, drawn to New Silk Road's Asia Landmark Fund and China Fund, New Silk Road's growth trajectory saw an incline since its beginnings, having reached nearly US$2 billion in assets under management in 2021. Goh and Hoong are among the first pioneers in setting up an Asia focused hedge fund. Goh was previously with GIC for 18 years, according to his LinkedIn profile. Hoong graduated from the National University of Singapore (NUS) with an electrical engineering degree in 1990. Following that, he was in a few roles involving public and private market equity research and investment with various global firms, according to the NUS website. After his last role as the head of Hong Kong-China equity products at Deutsche Bank in 2008, he co-founded New Silk Road Investment with Goh. Both are crossing 60 years old, Hoong told Bloomberg. China investment slump Hoong told Bloomberg that the main reason for the shuttering of the fund is that they are opting for a slower pace. However, the fund's struggles also came during a time when China markets went into a slump, with China's widespread regulatory crackdown across sectors such as technology and real estate, and investors flocking to US markets. In 2022, China's benchmark CSI 300 Index tumbled by 22 per cent, with the decline extending into 2023. This affected various China investors and caused many funds to close. The China bear market persisted for a couple of years, but has since rebounded this year. Both the Asia Landmark Fund and the China Fund recorded negative returns for three of the past five years, with slumps of 28 per cent and 19 per cent, respectively, in 2022, according to Bloomberg, citing sources. These effects were clearly felt by New Silk Road, where it scaled back on staff levels in Shanghai, and closed a recently launched South-east Asia fund, said Hoong. The number of staff affected remained undisclosed. The closure of Hoong and Goh's hedge fund was announced on Jul 22, where all remaining capital will be returned to investors and the vehicles will be shuttered, amid a high level of investor redemptions and weak returns. Experts BT spoke to suggested that once a certain level of investor redemptions is hit, it is difficult for hedge funds to build back their capital. New Silk Road is not the only one to have gone through a rocky decline in Asia in the recent few years, though for a mix of other reasons. Another Singapore hedge fund Asia Genesis, for example, in January 2024 faced a significant level of drawdowns, in the light of its long positions in Hong Kong and China collapsing due to China's market rout, and short bets on the Nikkei crushed as Japan stocks surged to a 34-year high that month. The Asia Genesis Macro fund saw drawdowns of 18.8 per cent within the first weeks of January 2024 following its long-short play went wrong. The fund closed all its positions by Jan 18, 2024, and returned money after its losses to investors. What is a hedge fund, and what are some top hedge funds in Singapore? Within Asia-Pacific, Singapore continues to be an attractive centre for alternative and hedge fund managers to set up their regional investment teams, said MAS last year. The regulator noted that more global hedge fund managers are setting up offices here, with more than 250 of such managers as at the end of 2023. Some top hedge fund managers in Singapore include Quantedge Capital and Dymon Asia Capital. Dymon Asia manages over US$3.5 billion, while Quantedge manages more than US$4 billion. Dymon says its fund posted an 8 per cent return through May this year, topping other funds at global peers. Last year, it was up 17 per cent. Another long-running Singapore hedge fund manager is APS Capital Management, with its founder Wong Kok Hoi also considered an early pioneer in the scene. He was previously with GIC and MAS. Hedge funds are private funds actively managed by portfolio managers, and typically are considered higher-risk and requires a higher investment to start. There are many types of hedge funds, with various strategies ranging from long-short, global macro and multi-strategy. They can invest in a variety of assets, including stocks, fixed income, real estate, currencies and futures. The Singapore hedge fund market totalled S$327 billion as at December, according to data from MAS.
The Star
7 days ago
- Business
- The Star
Long-running hedge fund closes down
Turbulent markets: Motorists go about their routines with the central business district of Singapore in the background. New Silk Road's closure comes as smaller hedge funds face increasingly tough conditions. — Bloomberg SINGAPORE: One of Singapore's longest-running hedge funds, New Silk Road Investment, is shutting down after weak returns and a pullback by US investors in Asia led to a sharp drop in assets. The firm, started by two finance veterans about 16 years ago, saw assets under management plummet to US$615mil (S$787mil) as at December 2024, from almost US$2bil as recently as 2021. The closing comes as smaller hedge funds face increasingly tough conditions, from turbulent markets and geopolitical strife to the popularity of giant rivals whose myriad investment pods have attracted much of the available money. 'Our traditional source of funding from the US institutions had over the last several years been less enthusiastic about liquid equity investments in Asia, in no small part due to geopolitical reasons,' said co-founder Hoong Yik Luen. All remaining capital will be returned to investors and the vehicles shuttered, he added in an email. New Silk Road was a relative pioneer in Singapore's finance scene when it was founded in 2009 by Hoong, former head of Hong Kong-China equity products at Deutsche Bank, according to his LinkedIn profile, and Raymond Goh, former head of Asian equities at GIC. At the time, the entire hedge fund market in Singapore managed just S$59bil, a far cry from S$327bil as at December, according to the latest available data from the Monetary Authority of Singapore. The fund was among the early foreign investors in China, with a team on the ground in Shanghai. When it was approved for investing in yuan-denominated mainland Chinese stocks and bonds under the Qualified Foreign Institutional Investor programme in 2012, fewer than 200 firms had received such licences from the China Securities Regulatory Commission. But in recent years, performance suffered. Three of the past five years saw negative returns for both the Asia Landmark Fund and the China Fund, with declines of 28% and 19%, respectively, in 2022, according to people familiar with the matter. That same year, China's benchmark CSI 300 Index plummeted by 22%. The slump stretched into 2023, hitting many veteran China investors and forcing some to close shop. The firm had been particularly popular with US institutional investors, many of whom became wary of investing in Asia and began redeeming their funds, according to people familiar. 'We are just one of many active value funds in Asia that have not been the favour of the time,' Hoong said. 'The market has changed in such a way that it disfavours longer-term fundamental investing approach with value bias.' New Silk Road attempted to scale back earlier in 2025, reducing staff in Shanghai and shuttering a South-East Asia fund it had launched more recently, Hoong added. It is not clear how many staff members will be affected. While acknowledging that 'active management in Asia has been tough', Hoong said the firm was not forced to wind down due to deficits. He added that Singapore is still a successful hub for hedge funds. Instead, the two founders opted for a slower pace, and their successors were not ready to take the reins. 'We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time,' he said. 'It's as simple as two veterans choosing a different path in life.' — Bloomberg
Mint
22-07-2025
- Business
- Mint
Asia Hedge Fund New Silk Road Shuts After US Investor Pullback
One of Singapore's longest-running hedge funds, New Silk Road Investment Pte, is shutting down after weak returns and a pullback by US investors in Asia led to a sharp drop in assets. The firm, started by two finance veterans about 16 years ago, saw assets under management plummet to $615 million as of December, from almost $2 billion as recently as 2021. The closing comes as smaller hedge funds face increasingly tough conditions, from turbulent markets and geopolitical strife to the popularity of giant rivals whose myriad investment pods have attracted much of the available money. 'Our traditional source of funding from the US institutions had over the last several years been less enthusiastic about liquid equity investments in Asia, in no small part due to geopolitical reasons,' said co-founder Yik Luen Hoong. All remaining capital will be returned to investors and the vehicles shuttered, he added in an email. New Silk Road was a relative pioneer in Singapore's finance scene when it was founded in 2009 by Hoong, former head of Hong Kong-China equity products at Deutsche Bank AG, according to his LinkedIn profile, and Raymond Goh, ex-head of Asian equities at GIC Pte. At the time, the entire hedge fund market in Singapore managed just S$59 billion , a far cry from S$327 billion as of December, according to the latest available data from the Monetary Authority of Singapore. The fund was among the early foreign investors in China, with a team on the ground in Shanghai. When it was approved for investing in yuan-denominated mainland Chinese stocks and bonds under the Qualified Foreign Institutional Investor program in 2012, fewer than 200 firms had received such licenses from the China Securities Regulatory Commission. But in recent years performance suffered. Three of the past five years saw negative returns for both the Asia Landmark Fund and the China Fund, with declines of 28% and 19% respectively in 2022, according to people familiar, who requested not to be named because the matter is private. That same year, China's benchmark CSI 300 Index plummeted by 22%. The slump stretched into 2023, hitting many veteran China investors and forcing some to close shop. The firm had been particularly popular with US institutional investors, many of whom became wary of investing in Asia and began redeeming their funds, according to people familiar. 'We are just one of many active value funds in Asia that have not been the favor of the time,' Hoong said. The market has changed in such a way that it 'disfavors longer-term fundamental investing approach with value bias.' New Silk Road attempted to scale back earlier this year, reducing staff in Shanghai and shuttering a South East Asia fund it had launched more recently, Hoong added. It's not clear how many staff will be affected. While acknowledging that 'active management in Asia has been tough,' Hoong said the firm wasn't forced to wind down due to deficits. He added that Singapore is still a successful hub for hedge funds. Instead, the two founders, both 'crossing 60' years old, opted for a slower pace, and their successors weren't ready to take the reins. 'We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time,' he said. 'It's as simple as two veterans choosing a different path in life.' With assistance from Bei Hu.
Business Times
22-07-2025
- Business
- Business Times
One of Singapore's longest-running hedge funds is shutting down on US investor pullback
[[SINGAPORE] One of Singapore's longest-running hedge funds, New Silk Road Investment, is shutting down after weak returns and a pullback by US investors in Asia led to a sharp drop in assets. The firm, started by two finance veterans about 16 years ago, saw assets under management plummet to US$615 million as at December, from almost US$2 billion as recently as 2021. The closing comes as smaller hedge funds face increasingly tough conditions, from turbulent markets and geopolitical strife to the popularity of giant rivals whose myriad investment pods have attracted much of the available money. 'Our traditional source of funding from the US institutions had over the last several years been less enthusiastic about liquid equity investments in Asia, in no small part due to geopolitical reasons,' said co-founder Hoong Yik Luen. All remaining capital will be returned to investors and the vehicles shuttered, he added. New Silk Road was a relative pioneer in Singapore's finance scene when it was founded in 2009 by Hoong, former head of Hong Kong-China equity products at Deutsche Bank, according to his LinkedIn profile, and Raymond Goh, ex-head of Asian equities at GIC. At the time, the entire hedge fund market in Singapore managed just S$59 billion, a far cry from S$327 billion as at December, according to the latest available data from the Monetary Authority of Singapore. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The fund was among the early foreign investors in China, with a team on the ground in Shanghai. When it was approved for investing in yuan-denominated mainland Chinese stocks and bonds under the Qualified Foreign Institutional Investor programme in 2012, fewer than 200 firms had received such licenses from the China Securities Regulatory Commission. But in recent years, performance suffered. Three of the past five years saw negative returns for both the Asia Landmark Fund and the China Fund, with declines of 28 per cent and 19 per cent respectively in 2022, according to sources familiar, who requested not to be named because the matter is private. That same year, China's benchmark CSI 300 Index plummeted by 22 per cent. The slump stretched into 2023, hitting many veteran China investors and forcing some to close shop. The firm had been particularly popular with US institutional investors, many of whom became wary of investing in Asia and began redeeming their funds, according to sources familiar. 'We are just one of many active value funds in Asia that have not been the favour of the time,' Hoong said. The market has changed in such a way that it 'disfavours longer-term fundamental investing approach with value bias'. New Silk Road attempted to scale back earlier this year, reducing staff in Shanghai and shuttering a South East Asia fund it had launched more recently, Hoong added. It's not clear how many staff will be affected. While acknowledging that 'active management in Asia has been tough', Hoong said the firm was not forced to wind down due to deficits. He added that Singapore is still a successful hub for hedge funds. Instead, the two founders, both 'crossing 60' years old, opted for a slower pace, and their successors were not ready to take the reins. 'We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time,' he said. 'It's as simple as two veterans choosing a different path in life.' BLOOMBERG
Straits Times
22-07-2025
- Business
- Straits Times
New Silk Road, one of Singapore's longest-running hedge funds, shuts after US investor pullback
New Silk Road was a relative pioneer in Singapore's finance scene when it was founded 16 years ago in 2009. SINGAPORE – One of Singapore's longest-running hedge funds, New Silk Road Investment, is shutting down after weak returns and a pullback by US investors in Asia led to a sharp drop in assets. The firm, started by two finance veterans about 16 years ago, saw assets under management plummet to US$615 million (S$787 million) as of December, from almost US$2 billion as recently as 2021. The closing comes as smaller hedge funds face increasingly tough conditions, from turbulent markets and geopolitical strife to the popularity of giant rivals whose myriad investment pods have attracted much of the available money. 'Our traditional source of funding from the US institutions had over the last several years been less enthusiastic about liquid equity investments in Asia, in no small part due to geopolitical reasons,' said co-founder Hoong Yik Luen. All remaining capital will be returned to investors and the vehicles shuttered, he added in an email. New Silk Road was a relative pioneer in Singapore's finance scene when it was founded in 2009 by Mr Hoong, former head of Hong Kong-China equity products at Deutsche Bank, according to his LinkedIn profile, and Raymond Goh, ex-head of Asian equities at GIC. At the time, the entire hedge fund market in Singapore managed just $59 billion, a far cry from $327 billion as of December, according to the latest available data from the Monetary Authority of Singapore. The fund was among the early foreign investors in China, with a team on the ground in Shanghai. When it was approved for investing in yuan-denominated mainland Chinese stocks and bonds under the Qualified Foreign Institutional Investor programme in 2012, fewer than 200 firms had received such licenses from the China Securities Regulatory Commission. Top stories Swipe. Select. Stay informed. World Trump 'caught off guard' by Israel's strikes in Syria Opinion Singapore's vaping crisis lays bare the drug addiction nightmare for parents Singapore LTA seeks tailored solutions to improve Bukit Panjang LRT's maintenance inspections World US not rushing trade deals ahead of August deadline, will talk with China, Bessent says Multimedia 'It's very sad': She comforts loved ones turned away by inmates Opinion Sumiko at 61: 7 facts about facial skin ageing, and skincare ingredients that actually work Singapore Subsidies and grants for some 20,000 people miscalculated due to processing issue: MOH Opinion With Shatec cutting back operations, what's next for Singapore's hospitality sector? But in recent years performance suffered. Three of the past five years saw negative returns for both the Asia Landmark Fund and the China Fund, with declines of 28 per cent and 19 per cent respectively in 2022, according to people familiar with the matter. That same year, China's benchmark CSI 300 Index plummeted by 22 per cent. The slump stretched into 2023, hitting many veteran China investors and forcing some to close shop. The firm had been particularly popular with US institutional investors, many of whom became wary of investing in Asia and began redeeming their funds, according to people familiar. 'We are just one of many active value funds in Asia that have not been the favour of the time,' Mr Hoong said. The market has changed in such a way that it 'disfavours longer-term fundamental investing approach with value bias.' New Silk Road attempted to scale back earlier this year, reducing staff in Shanghai and shuttering a South East Asia fund it had launched more recently, Mr Hoong added. It's not clear how many staff will be affected. While acknowledging that 'active management in Asia has been tough,' Mr Hoong said the firm wasn't forced to wind down due to deficits. He added that Singapore is still a successful hub for hedge funds. Instead, the two founders, both 'crossing 60' years old, opted for a slower pace, and their successors weren't ready to take the reins. 'We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time,' he said. 'It's as simple as two veterans choosing a different path in life.' BLOOMBERG
