John Liu

Monroe Township, NJ (USA)
Role(s):
Founder/Owner/Principal

HAN Capital Management LLC

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Location: Monroe Township
Industry: Investing
Year Founded: 2008
Number Employees: 1-10 people
Description: HAN Capital Management, LLC ((“HAN Capital” or the "Company") is a New York based start-up multi-strategy market neutral hedge fund focusing on global equity markets. HAN Capital seeks to achieve superior risk-adjusted, absolute returns by investing in and trading the equity securities of companies. Objectives: (1). Optimize investment returns throughout economic cycle and investment life-cycle (2). Target to absolute returns in excess of 20% net of all fees over the intermediate-to-long term. (3). Target annualized volatility 5-10% (4). Target Sharpe ratio 2.5+ (5). Grow assets under management from $50MM in 1st year to $200MM in 2nd year. The ultimate goal is to grow into billion dollar mutli-strategy equity long/short fund in 3-5 years. Current Investment Opportunities: The opportunities for equity market neutral strategies are a lot better than a year ago through the last year of de-leveraging process in the global equity markets. The marker volatility is relatively high due to global macroeconomics uncertainty, such as high inflation and commodity price boom. Now investor community’s expectations on these investment styles are more reasonable in terms of what a fund like this can achieve. We see it as a good time to launch a multi-strategy equity market neutral fund. The key challenge in the future from last 12 months experience is that the equity market neutral funds need to put constant effort to research for the new alpha generator ahead of market place before the alpha arbitrage away and the alpha source becomes more systematic or beta. So for a large equity market neutral fund, the strategy diversification in the portfolio becomes essential in additional to geographic diversification. The hedge fund industry is becoming the main street with estimated 2 trillions dollar under management with the expected $200 billions inflow in 2008. Keys to Success: The keys to success for HAN Capital Management, LLC are: (1). Experienced team with the combined more than 40 years Wall Street experience (2). Innovative investment process combined both bottom to top and top to bottom security selection with both marco and micro risk factors in the risk management process (3). Multi-strategy approach to diversify and reduce the portfolio risk to enhance the rate of return in the investment process. (4). Quantitative risk management process at both macro risk factors and micro risk factors with 7/24 monitoring capacity of market risk. (5). The geographic diversification in the global portfolio enhances the rate of return further.