Latest news with #NewSilkRoad
Mint
12 hours ago
- 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
13 hours ago
- 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
Yahoo
13 hours ago
- Business
- Yahoo
Asia Hedge Fund New Silk Road Shuts After US Investor Pullback
(Bloomberg) -- 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. Why the Federal Reserve's Building Renovation Costs $2.5 Billion Milan Corruption Probe Casts Shadow Over Property Boom Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom How San Jose's Mayor Is Working to Build an AI Capital 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 ($46 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. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Straits Times
14 hours ago
- 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
Bangkok Post
6 days ago
- Business
- Bangkok Post
Risks and rewards of Beijing's BRI
Thailand may play a pivotal role in advancing China's vision of regional connectivity through the Belt and Road Initiative (BRI), but scholars caution that while the initiative presents substantial opportunities, it also brings significant challenges. They urge the government to adopt strategic policies that safeguard national interests and promote constructive global engagement. Launched in 2013, the BRI, also known as the New Silk Road or One Belt One Road, is a global infrastructure and investment strategy that now involves more than 150 countries. The initiative comprises overland economic corridors across Central Asia and maritime routes through Southeast Asia, South Asia, the Middle East, and Africa. In an interview with the Bangkok Post, Asst Prof Sineenat Sermcheep, director of the Asean Studies Center at Chulalongkorn University's Faculty of Economics, underscored Thailand's strategic importance due to its geographical position and economic compatibility with the BRI. "Thailand is a vital link within the China-Indochina Peninsula Economic Corridor [CICPEC], connecting China with Asean nations," she said, adding the country has also engaged in BRI's regional trade and logistic projects such as the China-Laos-Thailand railway. These efforts align with key national strategies, including Thailand 4.0 and the Eastern Economic Corridor (EEC), which focus on innovation and high-tech industries -- areas that also attract Chinese investment under the BRI. "Thailand's targeted industries under the Thailand 4.0 scheme closely match those outlined in China's 'Made in China 2025' plan," Ms Sineenat said, adding this synergy has drawn Chinese investment, particularly in advanced technology and infrastructure within the EEC. She also highlighted several key agreements under the BRI framework between Thailand and China, including the Strategic Cooperation Agreement and the China-Laos-Thailand Economic Corridor, which are designed to improve transport connectivity, increase trade, and deepen economic cooperation. Political science lecturer, Anekchai Rueangrattanakorn, from Silpakorn University, said the BRI is not just an economic initiative, but a means of contributing to regional stability. He pointed to China's mediating role in conflict-prone regions along BRI routes as evidence of the country's interest in maintaining peace to safeguard its investments. "The BRI reflects not only China's economic ambition but also its aspiration to be seen as a responsible global power," he said. "Thailand could leverage this position to work more actively with China in resolving regional crises, particularly the ongoing conflict in Myanmar, a country central to the BRI's regional goals." Ms Sineenat said the BRI has strengthened Thailand–China ties through increased trade, infrastructure projects, and cultural exchanges. The China-Laos-Thailand railway, she said, supports both tourism and trade, while the development of Laem Chabang Sea Port as a maritime node under the BRI aims to connect with major Chinese ports like those in Ningbo and Guangzhou. "This maritime link will further boost trade between southeastern China and Thailand," she said. The BRI also supports Thailand's digital transformation, smart city initiatives, and the growth of e-commerce and digital payment systems. Thai businesses, especially in sectors like AI, green energy, and fintech, have benefited from access to Chinese markets and technologies. If fully realised, Ms Sineenat said, the BRI could accelerate Thailand's industrial modernisation and open up new markets in Central Asia, Eastern Europe, and Africa. Mr Anekchai agreed, noting BRI projects such as the Laos-Thailand railway have already strengthened economic ties while boosting intra-regional trade, tourism, and people-to-people exchanges. "The multilateral collaboration doesn't just foster long-term political trust between Thailand and China, but also signals Thailand's commitment to a win-win approach, which could enhance broader regional partnerships." He said the BRI could elevate Thailand's status as Asean's key connectivity hub and a more prominent diplomatic actor. However, he warned that such engagement requires careful diplomacy. "Thailand must strike a balanced foreign policy, working with China without alienating Western partners. A constructive and balanced approach is essential," he said. Ms Sineenat also warned about economic risks, including trade imbalances and fierce competition from Chinese firms, particularly affecting local small and medium-sized enterprises (SMEs). She also pointed to digital vulnerabilities. "Thailand must avoid over-reliance on Chinese imports and ensure fair trade," she said.
