Successful Richland Closing Operations

May 2, 2013 James Heinsman Hedge Fund News

In a surprise move, Richland Capital Management Ltd announced that it is closing shop, despite recent excellent performance which was better than its closest competitors in the Asian hedge fund market. The move is considered highly unusual for a successful firm in an industry which is having a difficult time raising assets.

Chief Investment Officer Alex Au said that the stocks in the Richland Asia Absolute Return Fund and the Richland Emerging Opportunities Fund have been sold, but he did not say why this decision, which was made a month ago, was taken.

Hong-Kong-based Richland is one of the most famous of the Asian hedge funds. It has about $100 million in assets under management in two funds. Richland also acts as an advisor for wealthy individuals for about $150 million in other assets.

Founded in 2006 by a former trader for HSBC Holdings Plc. Alex Au, and former Credit Suisse Group AG worker Eva Lo, Richland has posted gains every year since its founding, even in the traumatic 2008 crisis year, when it had a 5.3 percent gain.

Generally funds remain open as long as they are prospering, and only close down when either there is poor performance or client withdrawal of large sums of money. Neither of these has occurred to Richland, and its reason for winding down remains unclear.

Alex Au, Asian Hedge Funds, Eva Lo, Richland Capital Management,

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