China hedge funds diversify, seek HK presence

China onshore hedge fund managers are showing signs of diversification, with some planning to set up an offshore presence in Hong Kong, according to Skybound Capital. The Cape Town-based firm funds a mainland-focused China Red fund of hedge funds, with $20 million in AUM. It returned about 6% in 2012 – a bumpy year for China managers, having experienced a strong average performance in January and February before slumping in the months leading up to September, by the Eurekahedge Gr…