Hong Kong’s Value Partners launches in London
Hong Kong’s first quoted asset manager, Value Partners Group with USD16.4 billion under management, has made its first strategic international move from its Asian roots and opened an office in London, under the command of country head and senior director, Hendrik von Ripperda-Cosyn.
In an exclusive interview with AlphaQ, von Ripperda-Cosyn says: “We aim to move beyond being a recognisable household name in Asia, to becoming a world class asset manager.”
The firm plans to broaden its product range away from local Asian equities and fixed income to broader emerging markets and to diversify the investor base, which is currently dominated by Asian institutions and intermediaries.
The firm is also hoping to bring its ETF business to London. “We are looking at expanding our ETF offering into Europe and we are flexible about how we do this, whether on our own or with a local partner, but we have no plans yet” von Ripperda-Cosyn says.
Value Partners was launched in 1993 and now has more than 200 employees and offices in Beijing, Shanghai and Singapore in addition to its Hong Kong headquarters.
The investment focus has always been emerging markets, initially equities only in China and greater China, and now expanded to include fixed income and wider Asian and global emerging markets. The investment process is thematic and rigorous, Ripperda-Cosyn says. He and senior analyst Martha Reyes and investment director Kenny Tjan have all joined the firm from niche institutionally focused investment boutique Mestiq Capital.
At the time of the announcement of the new London office, Dr AU King Lun, CEO of Value Partners Group said that the firm aims to become an investment solutions provider to Chinese investors, as well as a China and Asia investments expert to investors around the world. Ripperda-Cosyn says: “We have an institutional grade process which is very well defined and rigorous. Wholesale investors in Europe are becoming more institutional and the old cliché of the consultant or big pension fund route has changed across the board because all investors have become more sophisticated.”
Ripperda-Cosyn says "We had to think very carefully about what we needed to penetrate the European market. As such, we developed the SMART Investment Strategy, building on Value Partners' longstanding stock picking expertise and, not least, a disciplined and rigorous investment process. We are confident that this strategy will resonate with a broad investor audience."
The SMART range from Value combines the Value Partners’ quant skills with what it calls the ‘street-wise’ fundamental approach of its local investment teams. The firm says that the combined ‘twin pillars’ result in a product that reflects the high conviction fundamental bottom-up stock picking ideas with a systematic and consistent portfolio construction framework. The strategy aims to achieve consistent outperformance of 5 per cent on average over five years.