The strong rebound of regional stock markets this year has been forcing many Asian hedge funds to seriously consider reducing or avoiding the shorting of single stocks and equity indices as a strategy.
Tantallon Capital, the Singapore-based manager of long/short Asia equity focused Tantallon Fund, for instance, has recently decided to completely abandon shorts and is changing the mandate of the fund to long-only.
The group’s other fund, the Tantallon Emerging Markets Fund run by Tariq Ahmad, remains a long/short fund although the manager also runs a number of separate accounts on a long-only basis.
By end June, the Tantallon Fund will become a long-only fund holding a limited number of high conviction ideas held on a minimum three-year view. At most, the portfolio will hold no more...