WF Asia Fund outpacing peers YTD

17 August 2012   Category: News, Asia, Hong Kong, Singapore, Indonesia  

WF Asia Fund Ltd, a US$209 million Hong Kong hedge fund, has beaten peers year-to-date by betting on stocks that gain from rising consumer demand and wagering against companies with flawed business models or fraudulent management, said a report from Bloomberg on Thursday (August 16).

The fund, which began trading in February 2001, returned almost 16% in the first seven months, according to the July newsletter that Hong Kong-based Ward Ferry Management sent to investors and was obtained by Bloomberg News. The Eurekahedge Asia Long-Short Equities Hedge Fund Index gained 0.9% in the period, according to preliminary data from the Singapore-based data provider.

WF Asia has increased positions on consumer staples and other defensive stocks while raising bets against technology companies and industrial machinery producers that are more affected by the economic slowdown across the world, according to the letter. Global economic worries and the European debt crisis have contributed to the 7%-plus drop on the MSCI Asia- Pacific Index from its 2012 peak.

Among the stocks that contributed to the fund’s performance this year was PT Tower Bersama Infrastructure, a Jakarta-based firm that builds and leases telecommunication towers to service providers, according to the report.