Prudence prepares to piggyback strong growth in Chinese credit markets

Wed Apr 18, 2012

Prudence Investment Management stuck its neck out when Chinese credit was in the doldrums. Now it is uniquely placed to benefit from growth

In a region dominated by equity long/short funds, Hong Kong-based Prudence Investment Management stands out for its focus on the rapidly growing Chinese credit market. The firm manages $400 million and has a staff of 20, spread across offices in Hong Kong, Shenzhen, Beijing and Shanghai.

The firm invests exclusively in offshore bonds issued by Chinese companies, or companies that derive the majority of their business from China. Chad Liu, a former trader at Deutsche Bank’s Saba group, saw an opportunity in the nascent credit market when he founded the firm in 2008 along with former Deutsche Bank private banker Wang Yuan and Dr Philip Wu, the former chief executive of Wing Lung Bank. At present, Prudence runs two funds: the flagship Prudence Enhanced Income Fund, as well as the long-only Prudence RMB Income Fund.

The promise of the nascent credit market is what drew Liu to...

ISSN: 2151-1845 / CDC10004H

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