Monthly Archives: January 2017

Michael Wegener of Case Equity discusses his Asia-based global event-driven strategy

Michael Wegener of Case Equity

Michael Wegener of Case Equity

Hong Kong-based OP Investment Management (OPIM) keeps growing and helping some interesting hedge fund managers to launch their own funds. Former banker Michael Wegener, now Managing Partner of Case Equity, is one of them. HFC’s Stefan Nilsson decided to have a chat with Wegener about his event-driven investment strategy.

 

What can you tell us about your global event-driven strategy?

Case Equity is a global event-driven investment firm across merger arbitrage and special situation equities. Its philosophy is one of a global CIO office investing in best-in-class event-driven situations; defined as value-oriented, event-driven – hard or soft catalyst – with shareholder momentum overlay.

 

What sets you and your strategy apart from all the other emerging managers in Hong Kong?

Case Equity is the one and only event-driven hedge fund running a global strategy out of Hong Kong, Asia; as event-driven requires the key success factors of information transparency, board accountability and corporate governance. Intra-Asian investing were to add a political dimension coming with elevated risk beyond many investors control; hence our focus on Western markets, many of which trans-Atlantic deals, e.g. Johnson & Johnson’s recent US$30 billion acquisition of Actelion.

 

You have launched your fund on the OPIM platform. Why did you choose to work with OPIM?

I was keen to start on a multi-manager hedge fund platform allowing me to a) focus on investing and being in front of investors, b) know that the operational and regulatory aspects of the business are being taken good care of, and c) allowing me to keep full equity ownership, brand building identity and future growth support as a stand-alone entity.

 

Why did you launch the fund with Hong Kong as a base? You run a global strategy, are there advantages to being based in Asia?

I happen to be in Hong Kong, where Case Equity becomes one of the few choices for Asian high net-worth and family office investors looking for a) global equities diversification, b) absolute return strategy (9%-12% IRR target/run-rate) uncorrelated from broader equity markets (<30% beta to market), and c) exposure to global M&A activity (front-page, large-cap, cross-border, complex). Also, event-driven is not a day-trading strategy as an entry point depends on the right week or month – not day – with the investment exits predominantly sold in to the event at M&A (tender) offer price.

 

What did you do before you launched Case Equity?

I started my career as an investment banking analyst as part of Salomon Smith Barney’s (later Citigroup) Analyst Class 2000, having since focused on M&A/advisory for 15 years globally across multi-industries; prior to Case Equity’s Opportunities Fund launch in March 2016.

 

If you hadn’t been a fund manager, what would you have been doing?

Possibly M&A/strategy at a global corporate/diversified industrial group; though the skill set to anticipate M&A deals happening is best employed as an event-driven fund manager, delivering attractive risk-adjusted returns for investors.

(Jan 2017)

Katharina Reimer

Katharina Reimer

Karen Leung Foundation, the Hong Kong-based cancer charity founded in memory of late Oasis Management trader Karen Leung, has hired Katharina Reimer as its new executive director. Reimer is well-known to many in the hedge fund industry, not least because of her involvement with 100 Women in Hedge Funds. Karen Leung Foundation, whose board members include Oasis founder Seth Fischer, hosts the terrific annual Sohn Conference in Hong Kong. The foundation makes an impact by raising awareness about gynecological cancers, educating the local community to promote prevention and early detection and ensuring that women in treatment have access to optimal care.

Anthony Tse

Anthony Tse

Anthony Tse, former chief executive and portfolio manager of Pangu Capital, has joined CrimsoNox Capital in Singapore as head of global equities. He was most recently a portfolio manager at Visium Asset Management in London where he managed an equity long/short strategy. Earlier in his career he has worked at Gandhara Capital and TPG in Hong Kong and Credit Suisse in New York.

Anthony Scaramucci

Anthony Scaramucci

Anthony Scaramucci, a former Goldman Sachs banker who founded FoF business SkyBridge Capital in 2005 and also established the SALT industry conference in Las Vegas, has taken up a White House position in Donald Trump’s administration. As part of his transition into government, he has sold his SkyBridge stake to a group of investors, including Chinese company HNA Capital.

Bengt Sjöberg at Hong Kong Hedge Funds Club in 2014

Bengt Sjöberg at Hong Kong Hedge Funds Club in 2014

Hong Kong-based businessman and investor Bengt Sjöberg, who co-founded and seeded the hedge fund Lynx, has passed away. Soon after having been diagnosed with lung cancer, he founded the Sjöberg Foundation in 2016 to help finance cancer research. Rest in Peace, Bengt.

The Preqin All-Strategies Hedge Fund benchmark finished up 7.4% in 2016, the industry’s best yearly performance since 2013.

Industry body AIMA has hired Lilian Lee as the new general manager for its Singapore office. Lee was most recently a senior VP at sovereign wealth fund GIC.