Searching for Asia's Next Alpha Generators | SALT iConnections Asia

TL;DR

Asia's Alpha generators, including China, present both investment opportunities and challenges for managers and allocators in the region.

Transcript

good afternoon everybody and uh welcome to Salt eye connections Asia and our panel for the ongoing search for Asia's Alpha generators my name is Michael Denon Slater and I look after Asia Pacific for uh eye connections and uh I'm delighted to welcome you all here and if I might take a wee moment just to to acknowledge the the work of all the staff ... Read More

Key Insights

• 🌏 Multi-strategy funds have expanded rapidly in Asia, offering more opportunities for investors but also potentially corrupting talent in some cases.
• 🖤 Japan's bond market presents opportunities for generating alpha due to its inefficiencies and lack of competition.
• 😀 While China's property market faces challenges, other sectors, such as technology, offer potential investment opportunities.
• 🪡 Panelists emphasize the need to separate China from the overall asset allocation bucket to better assess risks and opportunities.
• 🌏 Talent retention and recruitment are significant challenges in Asia's investment landscape, driving the need for innovative approaches to support emerging managers.
• 🌏 The media portrayal of Asia, particularly China, in the West may not always reflect the full investment potential and opportunities in the region.
• ↩️ The panelists stress the importance of generating strong returns for investors, prioritizing both left-tail risk mitigation and right-tail opportunities.
• 🍉 Geopolitical risks, such as the US-China relationship, are a concern, but efforts to stabilize relationships and focus on long-term cooperation are expected.

Questions & Answers

Q: What are the key qualities and criteria you look for in an investment manager?

Managers with drive, passion, and a track record of success are preferred. The ability to survive market cycles and demonstrate a long-term investment approach is crucial.

Q: Is China still an investable space given its recent challenges?

While China faces challenges in its property market, there are still opportunities in other sectors, such as technology. Investors should focus on mitigating risks and considering China's role in their overall asset allocation.

Q: How do platforms and standalone launches differ in terms of opportunities for emerging managers?

Platforms provide a structured environment for emerging managers, but standalone launches offer more independence and flexibility. Both options have their advantages and depend on the manager's strategy and goals.

Q: What macro headwinds do you anticipate in the coming year that could impact the region?

Geopolitical risks, including the US-China relationship, could affect market stability. However, the panelists believe that both countries will work towards stabilizing their relationship, which could mitigate some risks.

Summary & Key Takeaways

• Panelists discuss their experiences and strategies in Asia's investment landscape, focusing on finding Alpha generators and long-term capital investments.

• They emphasize the importance of drive and passion in successful managers, as well as the need to adapt to changing market conditions.

• The discussion also highlights the opportunities in Japan's bond market and the potential of country-specific strategies in India and Korea.