The COVID-19 pandemic hasn’t been great for hedge funds. But for one new Hong Kong hedge fund, it’s been great: Infini Capital Management soared 33% in March and another 25% in April, and it’s feeling cocky. How cocky? How about guaranteeing you’ll never lose a nickel if you invest with it cocky?
Infini Capital Management Ltd. is gauging investor interest for full loss insurance on a new class of shares in a fund it launched last year…. “This offering is to hopefully get some investors over the edge who might still have some concerns about being an early investor in Infini,” Chief Operating Officer Michael Friedlander said in an interview.
Not that Infini thinks it will ever have to make good on that promise.
Executive Officer Tony Chin has offered to use his investment in the founder share class of the fund to offset any losses for investors in the new share class when they redeem, said Friedlander. Chin has so far invested $70 million of his personal fortune in the one-year-old fund.
Of course, Chin & co. aren’t doing this out of the goodness of their own hearts, but because they want to keep a bigger piece of those double-digit returns going forward.
In exchange, the firm would charge a performance fee as high as 50%, more than double the industry standard.