Hong Kong-based Prime Capital Management has closed its Dragon Billion China Fund at $1.4 billion, following a strong 2010 return of 14.43%. It compares to the 4.58% gain last year by the AsiaHedge Chinese Long/Short Index.
Launched in January 2004 as a long only China-focused equity fund, it was converted to a long/short strategy in 2005, the year its AUM reached $43 million. By 2008, Dragon Billion Fund had $300 million in assets, which more than doubled to $700 million by early 2010.
The strategy had 29.31% annualised returns as of the end