Hedge fund manager, eyeing Hong Kong listing, sees US presidential election stoking more market volatility on contested outcome
- US presidential election outcome is likely be contested, creating global market volatility, hedge fund says
- True Partner Capital is set to be the first hedge fund manager to list in Hong Kong as it opens its books to public investor scrutiny
The fund manager, which has applied for a listing on the smaller GEM board in Hong Kong, said this could also potentially set off a second wave of choppy trading in Hong Kong and China since the March sell-off caused by the coronavirus pandemic.
“Depending on who would be the next president, the isolationist policies under the current Trump administration could change,” Tobias Hekster, co-chief investment officer based in Chicago, said in a phone interview. “Any uncertainties about the future shape of US-China relations could drive volatilities in global equity markets.”
In the March sell-off, the Hang Seng’s 30-day volatility index surged to 64.8 on March 16, the highest since the gauge was introduced in 2011. The Chicago Board Options Exchange’s VIX, the volatility gauge of the S&P 500 index, also rose to a multi-year high on that day.
True Partner Capital is seeking to raise up to HK$195 million (US$25.2 million) through an initial public offering that will close on Friday. It is selling 100 million shares, at HK$1.55 to HK$1.95 each in the IPO, with the proceeds intended for hiring and upgrading its technology. The stock is expected to start trading on October 16.