shareswizard of 10years and still going strong

my darling PINPOINT HEDGE FUND NEWS IN THE MEDIA:

Sept 2009


2 Pinpoint Funds Nominated for 8th AsiaHedge Annual Awards

September 24, 2009


We are pleased to announce that Pinpoint China Fund and Pinpoint Asia Strategies Fund have been nominated for this year’s AsiaHedge awards.


Pinpoint China Fund was nominated in the category of best “China” fund, and Pinpoint Asia Strategies Fund was nominated in the category of best “Multi Strategy” fund. Awards results will be announced on 22nd October in Hong Kong.

While the awards’ nominee and winner selection methodology* is one of many ways to assess hedge fund quality, we appreciate the acknowledgement by AsiaHedge Awards of our funds’ performance over the last year which included some very difficult times. The Pinpoint team are proud of such achievements and continue to do our best to build upon them. We are also very grateful for the continuing support from all our investors.




* - Winners are decided using an established methodology based upon a combination of Sharpe Ratios and returns over the relevant time period. Nominations are decided by those funds that achieve the strongest Sharpe Ratios over the 12 months prior to the event (from October 2008 through the end of September 2009), so long as they also beat the median returns in their relevant peer groups. The eventual winners will be funds which achieve the best returns, as long as they also achieve Sharpe Ratios within 25% of the best of the nominees. All funds wishing to be considered must also have a reputable, independendent third party administrator.

AUG 2009
Pinpoint Funds Beat Peers With China Stocks, Bonds (Update1)
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By Bei Hu
Aug. 25 (Bloomberg) -- Pinpoint Investment Advisor Ltd., a hedge fund manager of $560 million, returned as much as four times its Asian peers this year through July with profits from a rebound in Chinese stocks and debt securities.
The $70 million Pinpoint Opportunities Fund, which gained 85 percent in the period, invested about half its assets in convertible and high-yield bonds, including those of Chinese property developers, said Duanmu Yongshan, Pinpoint’s Hong Kong- based chief marketing officer. The $300 million Pinpoint China Fund returned nearly 51 percent in the period, he said.
Stock-focused hedge funds, the hardest hit in Asia amid last year’s market slump, are leading the recovery in 2009. The Eurekahedge Asia Long/Short Equities Hedge Fund Index returned 19 percent this year through July, the best-performing strategy among eight tracked by the Singapore-based data provider. The index fell 22 in 2008, the worst since at least 2000.
“We think fundamentals will play an increasingly more important role relative to liquidity for the second half,” said Duanmu in an interview on Aug. 24.
The China Fund, which targets companies with a market value of more than $2 billion in Greater China, bet on a recovery in Chinese property and banking stocks it bought, he said. He declined to name specific companies.
Falling Volatility
The Hang Seng China Enterprises Index, which tracks 43 Chinese companies listed in Hong Kong, rose 48 percent this year after losing 51 percent of its value last year.
The funds’ gains this year showed “the fundamentals-drive approach is still richly rewarded by the market when it is not in a panic mode,” said Duanmu.
The 100-day price volatility of the Hang Seng China Enterprises Index more than halved after reaching its highest in at least nine years in January, Bloomberg data show.
Pinpoint China Fund, led by the company’s Chief Investment Officer Wang Qiang and Huang Yong, lost 35 percent of its net asset value last year, the first annual loss since its June 2005 birth. The Opportunities Fund, started in August 2007 and overseen by Huang and Rubin Jiang, declined 43 percent in 2008, according to investor newsletters. The fund focuses on small- and medium-sized Greater China companies.
“Fundamental-driven research is always relevant, but last year showed people that you cannot rely on fundamentals alone,” said Simon Potter, a Hong Kong-based investment analyst with Triple A Partners Ltd., which provides startup capital and marketing services to hedge funds.
Property, Banking
The China Fund achieved the gains this year with about 50 percent net exposure -- the difference between the amount that funds wager on rising and falling stocks -- said Duanmu. More than half of the fund’s return in the first half was driven by investments in the Chinese property, banking and internet gaming industries, he added.
Pinpoint from November through the first quarter ramped up investments in Chinese property companies, which had been battered last year by the global market rout as well as increased domestic taxes and interest rates to curb overheating in the industry.
“We felt the industry was seriously undervalued,” said Duanmu. “We live in China and could follow regional situation and statistics more closely. We beat the market to it.”
Hong Kong-quoted shares of Sino-Ocean Land Holdings Ltd., Beijing’s largest developer, more than doubled this year after slumping 64 percent in 2008. Shares of Agile Property Holdings Ltd., a Guangzhou-based builder listed in Hong Kong, surged 138 percent this year.
Bonds
The funds started to build up investments in Chinese banking stocks in the first quarter as de-leveraging and market panic forced other investors to sell, Duanmu said. They also brought shares in Chinese internet gaming companies, betting on increasing popularity of their products and services, he said.
Convertible and other bonds accounted for 63 percent of the Opportunities Fund’s investments and 68 percent of profits in the month of June, according to a Pinpoint investor newsletter. The fund had no bond holdings before October 2008, Duanmu said. About half of its convertible bond holdings were issued by Chinese property developers, he added.
JPMorgan’s Asia non-investment grade credit index gained 33 percent this year after last year’s 18 percent decline.
The rally prompted Pinpoint to free investors in the Opportunities Fund from July 1 from a two-year lockup of their investments introduced at the beginning of the year. It also reopened the Opportunities Fund to new investors.
Both funds sold borrowed shares of Chinese building materials makers, such as producers of cement, believing they’re overvalued with an unattractive business model under pressure from increasing competition, Duanmu said.
Pinpoint trimmed its banking and property-related investments in the second quarter after their recent rallies and instead increased investments in consumption-related industries less affected by overall market moves. It also swapped some of its stock holdings for bonds issued by the same companies to protect itself from an equity market correction, Duanmu added.
To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net Last Updated: August 25, 2009 00:01 EDT

May 2009


Rising China Fund ranked Top 1 by Eurekahedge in 2008
Rising China Fund has been ranked 1st place by Eurekahedge among commodity funds with the yearly net return +70.85%; annualized return +66.80%; andsharpe ratio +2.02 .
Data source: Eurekahedge, Asian hedge fund database as of Jan 30, 2009


April 2009

Pinpoint China Fund Joins Credit Suisse/Tremont Hedge Fund Index

We are pleased to announce that Pinpoint China Fund has been selected to become a constituent fund in the Credit Suisse/Tremont Hedge Fund Index effective April 2009.

Pinpoint China Fund became the second Pinpoint-managed hedge fund, after our Rising China Fund, to be included in this widely recognized industry index. Rigorous reporting standards are required of index member funds, including monthly performance disclosure and audited financial statements.

In addition to being a member of the main hedge fund index, Pinpoint China Fund is also a member of the Credit Suisse/Tremont LEA Index and the Credit Suisse/Tremont LEA Asia Index. Rising China Fund is also a member of the Credit Suisse/Tremont Emerging Markets Index.

This event highlights again the leading position of Pinpoint China Fund among Greater China-focused hedge funds. It also represents another industry recognition of Pinpoint’s sound business practices and success.


HISTORY OF PINPOINT

PinPoint 是一家为高端客户提供一系列选择性（包括Equity 和Commodity）投资产品的优秀资产管理机构。 公司的投资理念是：我们认为金融市场，特别是亚洲市场不是完全有效的。因此我们可以通过深入的研究和合理的分析取得超值回报。我们崇尚价值投资，注重对被投资公司或商品的基本面分析。公司致力于与广大国际投资者一起分享价值投资的成功喜悦。　　我们拥有二十六位专业人员来负责投资组合管理、研究、交易、风险管理及运营。我们的专业人员都在中国或海外（如美国、英国、加拿大等）高等学府受过良好的教育，并且在金融领域拥有丰富的国内和国际实践经验。我们的团队对大中华地区的证券市场和全球商品有着深刻的理解。通过深入的研究和分析，Pinpoint 将致力于打造一个业内排名位于前列，具有出色资产管理能力的资产管理机构。　　　Pinpoint 旗下管理着四支开放式对冲基金—— PINPOINT CHINA FUND, PINPOINT OPPORTUNITIES FUND, RISING CHINA FUND和PINPOINT ASIA STRATEGIES FUND。PINPOINT CHINA FUND于2005年开始运作。主要投资大中华地区具有高成长性、高内在价值的大市值上市公司。2006年，PINPOINT CHINA FUND获得了年度亚洲对冲基金“单一国家”最佳基金奖。2007年再次入围该奖项提名。PINPOINT OPPORTUNITIES FUND于2007年8月开始运作，也主要投资于大中华区的上市公司，更加关注有高成长潜力的中小型公司。RISING CHINA FUND于2007年7月正式运作， 这支对冲基金主要以供需关系变化的研究来投资于商品期货。 2008年，RISING CHINA FUND入围AsiaHedge最佳年度新基金奖提名。PINPOINT ASIA STRATEGIES FUND于2008年3月正式运作，是一支多策略对冲基金，主要投资于亚洲（除日本）的股票市场，商品期货，及货币和债券等　　此外，Pinpoint 还管理着一支私有股权投资基金—— PINPOINT CHINA DIRECT INVESTMENT FUND。

Price setters give Pinpoint edge
24/05/2006

Sunny Li's bets on rice liquor and tourism to China's fabled Yellow Mountain have produced a 48 percent return this year, making his US$50 million (HK$390 million) hedge fund the best performer of those that invest in the country.
Li's Pinpoint China Fund outpaced rivals and the nation's stock indexes by focusing on companies with near monopolies and brands that allow them to control prices - and by calling once a week to ensure they stayed that way.
That's important in a country where overinvestment has led to a glut of some products, trapping companies in a cycle of price-cutting, he said.
"The flip side of China's cheap goods is that it's hard for companies to turn market dominance into returns for shareholders," said Li at his office in Hong Kong. "Cutthroat competition among companies means we have to make sure the financial landscape of those we invest in doesn't change."
Finding a winning formula to picking shares is especially important in China, where only about 5 percent of the more than 1,400 stocks have gained over the past five years. Mainland shares listed in Hong Kong, where Li also invests, have done better over the same period. All but three of the 38 so- called H shares in the Hang Seng China Enterprises Index have risen.
While this year's 43 percent rally by the Shanghai Composite Index has made it easier to find performers, the mainland market may fail to hold its gains if history is any guide. The Shanghai Composite has surged 580 points since December 5. The last rally of that size preceded a 14-month, 40 percent rout that ended in July last year. The index is 26 percent below its 2001 peak.
The Shanghai-based Pinpoint China Fund, owned by Pinpoint Asset Management, was ranked the top China hedge fund at the end of last month, said Eurekahedge, a Singapore-based hedge fund research company. It's followed by Dynasty China Mainland Fund, managed by Dynasty Management in Shanghai, and Martin Currie China Hedge Fund, run by Edinburgh-based Martin Currie Investment Management.
"The risks of investing into China's stock market haven't changed much," said Liu Feng, an executive director at Shenzhen-based Century Securities.
"They include financial frauds and regulatory uncertainty. You have to be either local or very familiar with the companies, their products and brands to ensure your investment will pay off."
Li is one of a new generation of former equity brokers who are taking advantage of the growth in hedge funds in China. The amount of money managed by funds located both inside and outside the mainland has grown more than eightfold in the past five years to about US$1.5 billion. The amount is 1.9 percent of the US$80 billion held by Asia Pacific hedge funds.
The Pinpoint fund has more than doubled its return on an investment last June in Huangshan Tourism Development, which has a stranglehold on tourism to the famous mountain in the company's base in Anhui province.
In February, Pinpoint bought Kweichow Moutai, a mainland maker of rice liquor. Shares in the Renhuai, Guizhou- based company, which had advanced 5.8 percent in the previous six months, have almost doubled since the purchase.
Yunnan Baiyao Group has almost doubled since Pinpoint's investment this year. Li said the fund may buy more shares in the Kunming, Yunnan-based company because of its dominant share of the niche market in baiyou, a traditional white powder used to treat wounds.
To hedge against the risk of the A-share market collapsing, Pinpoint is shorting Barclays' iShares Asia Trust Index, a Hong Kong exchange-traded fund that tracks the performance of 50 large-capitalization stocks listed in China. Short selling of yuan-denominated A shares is illegal.
Unlike mutual funds, hedge funds can short sell stocks or use derivatives to improve performance.
In a short trade, investors sell a borrowed security, betting the price will fall and they can buy it back, pocketing the difference. Derivatives such as futures contracts are based on an underlying product, like copper.
Last year, the Shanghai benchmark fell 8.3 percent. Hedge funds that invest in Greater China, which takes in Taiwan and Hong Kong, gained on average 7.2 percent, according to Eurekahedge.
The Pinpoint fund also shorted Hopewell Holdings, which runs one of the busiest toll roads in southern China, after buying shares in toll-road operator Shenzhen Expressway in early March. Shenzhen Expressway has returned 43 percent, while Hopewell Holdings has gained 10 percent this year.
The Shanghai-based fund shunned auto stocks such as Denway Motors, which makes cars in China with Honda Motor, and Brilliance China Automotive Holdings - Bayerische Motoren Werke's partner - as rising competition forced them to cut prices even as sales of vehicles rose.
Pinpoint hasn't always been right. The fund began short selling copper when prices on the London Metal Exchange reached about US$4,800 a metric ton, Li said. Once the contract advanced to about US$6,500 he cut his losses. The metal reached a record US$8,600 a ton on May 11.
Hedge funds investing in the Greater China region returned 24 percent this year through the end of April, three times the average gains for Asia as a whole, according to Eurekahedge.
"We think the China domestic market has just started its bull turn even though it has rallied over 40 percent since the beginning of the year," Li said.
Reforms to convert state-owned shares into tradable stock "will make it one of the most interesting and rewarding markets in the next 10 years." BLOOMBERG