The fi­nan­cial diplo­mat

China Daily (Canada) - - SHANGHAI -

Bruce McGuire, the head of the Con­necti­cut Hedge Fund As­so­ci­a­tion, fos­ters greater co­op­er­a­tion between the as­set man­age­ment and hedge fund sec­tors in the United States and China

Founded in 2004 in Green­wich, a vi­brant hub in the United States that is home to some 380 hedge funds with com­bined as­sets worth $350 bil­lion, CTHFA has evolved from a group of Gold­man Sachs As­set Man­age­ment alumni mem­bers look­ing to net­work to an or­ga­ni­za­tion with around 3,000 mem­bers.

What makes the as­so­ci­a­tion ap­peal­ing to mem­bers is the syn­ergy it cre­ates by bring­ing mem­bers to­gether to push for­ward de­vel­op­ment of al­ter­na­tive in­vest­ment ap­proaches through quar­terly sym­po­siums which serve as an ed­u­ca­tional fo­rum and a net­work­ing op­por­tu­nity for pro­fes­sion­als, said McGuire.

In ad­di­tion, as­set man­age­ment pro­fes­sion­als are at­tracted by the town’s prox­im­ity to fi­nan­cial hubs in New York and its high yet af­ford­able stan­dard of liv­ing.

Ac­cord­ing to re­search by Zero2ipo, a pri­vate ven­ture firm based in Bei­jing, more than 10 mu­nic­i­pals in China are plan­ning to es­tab­lish their own in­dus­try-spe­cific hedge fund towns like Green­wich.

In Ningbo, East China’s Zhe­jiang prov­ince, a fund town for hedge funds has al­ready at­tracted more than 700 funds with a com­bined cap­i­tal ex­ceed­ing 100 bil­lion yuan ($14.56 bil­lion) as of the end of 2016. Over in Bei­jing, a fund town for eq­uity firms has more than 100 funds reg­is­tered with com­bined as­set un­der man­age­ment reach­ing 180 bil­lion yuan.

Ac­cord­ing to McGuire, who is also a board mem­ber of the Con­necti­cut-China Coun­cil, the as­set man­age­ment in­dus­try has in re­cent years been fo­cus­ing on cross-border op­por­tu­ni­ties, par­tic­u­larly those between the US and China mar­kets.

“Speak­ing from my ex­pe­ri­ence at Green­wich, I think the de­vel­op­ment of fund towns rely not only on gov­ern­ment poli­cies re­gard­ing the at­trac­tion of in­vest­ment, cap­i­tals and in­dus­tries,” said the 52-year-old, who had pre­vi­ously worked at Chicago-based Me­sirow Fi­nan­cial and Mer­rill Lynch.

“De­vel­op­ment also de­pends on the en­vi­ron­ment and the avail­abil­ity of fa­cil­i­ties such as hos­pi­tals, schools and life­style ameni­ties which can con­vince as­set man­age­ment pro­fes­sion­als to settle down to work and raise a fam­ily.”

CTHFA and the Zhe­jiang In­ter­na­tional Hedge Fund Tal­ents As­so­ci­a­tion (HTA) had on Novem­ber 30 an­nounced the first-ever strate­gic part­ner­ship between leading fund as­so­ci­a­tions in the US and China. Of­fi­cials said that this his­toric part­ner­ship will fa­cil­i­tate open di­a­logue and re­cip­ro­cal vis­its between the two as­so­ci­a­tions where mem­bers can share knowl­edge, ex­pand their com­mer­cial net­works and build new part­ner­ships.

HTA is the largest in­de­pen­dent hedge fund as­so­ci­a­tion in

China and it rep­re­sents over 300 of China’s leading hedge funds.

“This is the lat­est in a se­ries of en­gage­ments that CTHFA has in Chi­nese cities and the as­so­ci­a­tion will con­tinue to pro­mote the global hedge fund in­dus­try and fa­cil­i­tate cross­bor­der growth op­por­tu­ni­ties for funds in both coun­tries through this part­ner­ship,” said McGuire.

The two as­so­ci­a­tions will also work to­gether to build the “West Lake-Green­wich” Pri­vate Se­cu­rity Fund In­dex, de­liv­er­ing a valu­able mea­sure of Sino-Amer­i­can pri­vate fund data.

McGuire added that the de­ci­sion to es­tab­lish such a part­ner­ship was a sim­ple one to make, see­ing how China is the sec­ond largest econ­omy in the world and the en­gine of growth for the 21st cen­tury, while US as­set man­agers, es­pe­cially those lo­cated in Green­wich, are some of the best and bright­est in the field of fi­nance and in­vest­ment man­age­ment.

“China can ben­e­fit greatly from the tal­ents of these proven wealth man­agers, from both the pos­i­tive im­pact their in­vest­ments can have on the real Chi­nese econ­omy and through the su­pe­rior re­turns gen­er­ated for Chi­nese in­sti­tu­tions and in­vestors. We want to be a part of the sig­nif­i­cant growth in China,” said McGuire.


Bruce McGuire has helped del­e­ga­tions from China or­ga­nize vis­its to CTHFA in Green­wich. Bruce McGuire,

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