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Yanfu Investments

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Shanghai Yanfu Investments Co., Ltd.
Native name
上海衍复投资管理有限公司
Company typePrivate
IndustryInvestment management
FoundedApril 2019; 5 years ago (2019-04)
FounderGao Kang
HeadquartersShanghai, China
ProductsHedge funds
Quantitative finance
AUMUS$7.7 billion (June 2024)
Websiteyanfuinvestments.com
Footnotes / references
[1]

Yanfu Investments (Yanfu; Chinese: 衍复投资; pinyin: Yǎnfù Tóuzī) is a hedge fund management firm founded in 2019 that is headquartered in Shanghai. It is one of the largest quantitative funds in China.[2]

Background

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In 2010, Massachusetts Institute of Technology graduate Gao Kang was hired as analyst to work at Two Sigma in the U.S. On 5 February 2014 after winning a job at Citadel LLC in Chicago, Gao resigned from Two Sigma. Six days later, he was arrested during his exit interview. Two Sigma claimed Gao used decompiler programs to access unauthorized confidential code and made copies of them. Two Sigma obtained a copy of a letter from Gao to U.S. immigration officials indicating his intention to resign from his job and start a company in China. Gao plead guilty in exchange for a 10-month sentence.[3][4]

In 2015 Gao returned to China where he joined quantitative fund Ruitian Investment. He played a significant role in Ruitian Investment where in 2019, it became one of the four largest quantitative funds in China. In May 2019, Gao left Ruitian Investment due to disagreement in its future direction and took the Alpha strategy team and code with him. Gao's departure was considered a significant blow to Ruitian Investment.[5]

In July 2019, Gao and his team established Yanfu.[5][6] The team developed in 2016 under Ruitian Investment consisted of experienced employees who had previously worked at other quantitative funds in the U.S. or top domestic technology companies. The firm grew quickly and within one year, it had already exceeded 10 billion yuan in assets under management.[6]

For a few years, Yanfu stopped taking in money from investors due to the stock market decline in China. However, in November 2022, it was reported that Yanfu reopened all its products to investors.[7]

In February 2024, in what was known as "quant quake", regulators cracked down on quantitative funds in China which had an adverse effect for many due to investor withdrawals and asset declines. However Yanfu used to the opportunity to generate superior returns and became one of the four largest quantitative funds in China. Yanfu launched a new index-enhanced product tracking the CSI All-Share Index to sooth investor concerns over concentration in small caps.[8]

In July 2024, Yanfu published an article in defending quantitative funds in response to pundits blaming them for any market fluctuation and calling for them to be banned following regulatory tightening. Yanfu stated quantitative funds were lowering their trading frequency and extending their holding periods. In addition it stated its long-only stock approach is its main strategy.[9]

See also

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References

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  1. ^ "私募基金管理人公示 - 中国基金业协会". gs.amac.org.cn.
  2. ^ "遥遥领先，量化私募"新四大天王"出炉，头部集团颠覆在即". 36kr. 28 September 2023. Archived from the original on 15 March 2024. Retrieved 5 January 2025.
  3. ^ Vardi, Nathan (20 February 2014). "Analyst Charged With Stealing Quant Trading Models From Major Hedge Fund". Forbes. Archived from the original on 25 June 2023. Retrieved 6 January 2025.
  4. ^ Dolmetsch, Chris (24 February 2015). "Former Two Sigma Analyst Gao Pleads Guilty to Software Theft". Bloomberg News. Archived from the original on 28 May 2022. Retrieved 6 January 2025.
  5. ^ a b "分家两年半，锐天规模已不到50亿！没高亢就痿了？". Sohu. 21 October 2021. Retrieved 6 January 2025.
  6. ^ a b "衍复投资——致力创造稳健超额的私募基金管理人". Sina. 23 August 2023. Retrieved 6 January 2025.
  7. ^ "China Quant Funds Seek Billions After Sidestepping Rout". Bloomberg News. 11 November 2022. Retrieved 6 January 2025.
  8. ^ "Ex-Two Sigma Researcher Becomes Big Winner of China Quant Quake". Bloomberg News. 27 June 2024. Archived from the original on 19 August 2024. Retrieved 6 January 2025.
  9. ^ "China Quants Defend Sector Amid Calls to Ban Algorithmic Trades". Bloomberg News. 19 July 2024. Retrieved 6 January 2025.
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