Insights

Fund Highlights Exceptionally strong and consistent performance The following table shows the performance statistics for the fund. For references purposes, we have also included the MSCI Asia Pacific Index (in local currency). Fund and Market Performance Statistics 2025 Source: OQFM, Bloomberg Asia equity markets performed extremely strongly but with relatively high volatility and a significant drawdown. We achieved our objective of delivering consistently strong performance.

The following note was published in our November newsletter. All data are as of 30 November 2025. We closely monitor A–H cross‑sectional and time‑series discounts and premiums. Based on this analysis, we trade actively, with the vast majority of trades initiated intra‑day. Currently, the most interesting A-H trades are in the banking sector. China Merchant Bank’s H-share currently trades at more than a 10.7% premium to its A-share. It’s the only Financials H-share that trade

What’s driving share prices? To state the obvious, share prices are driven by liquidity flows. Put simply, when there are more buyers than sellers, share prices rise - and when there are more sellers than buyers, they fall. Over the long term, liquidity flows reflect company fundamentals. Good companies attract more net inflows than bad companies. The problem is the long term can be very long. We subscribe to the view outlined by Cliff Asness in his paper The Less-Efficient M

Detail broker data We now have data feeds for the complete set of StarMine factor data and, far more importantly, detailed broker...

One of the mispricing opportunities we target is the spread between A-shares and H-shares. Chart 1 illustrates the Hang Seng Stock...

Our year in review includes an analysis of environmental risk factors, changes in market structure (and how we adapted to these changes),...

In this brief note, we analyse what’s been happening in China using a question-and-answer format. What are the key facts? There have been...

Recently we’ve been monitoring the correlation between the daily performance of the Hang Seng Stock Connect China AH Premium (HSAHP)...

“In the short run, the market is a voting machine but in the long run, it is a weighing machine.” This is a quote from Warren Buffett in...

In this research note, we examine the opportunities and challenges associated with implementing a quant factor process in Japan. The...

Successfully investing in Asian equities requires specialist regional expertise. Each market has its own unique characteristics which...

Recently there has been considerable press coverage on the severe underperformance of numerous China quant funds. On 22nd February...

There are numerous equity market dislocations across the broad spectrum of Chinese securities.  They are the result of extreme liquidity...

The consequences of crowding are ever-present.  Normally it’s restricted to inhibiting alpha generation, particularly for fund managers...

Garbage in, garbage out Consider two different quantitative investment strategies: stat arb and multi-factor quant. A stat arb strategy...

We take a holistic approach to analysing the fund’s China exposure and opportunistically shift net China exposure between ‘A’ and ‘H’...

The most distinctive feature of our investment process is our non-systematic overlay. Previously we’ve documented how we manually review...

The following chart shows the 30-day moving average of the number of daily trades since the fund was launched. Chart 1: 30 day moving...

The first point to emphasise is we will always be Asian specialists. Previously – before setting up OQ – we diversified outside of Asia....

Understanding the challenge We’ll start with an irrefutable fact: fund return volatility is required to generate decent performance....

“Hedge funds fail when rock stars are in charge” Matthew Lyn, Bloomberg, 2010 This is the subject line for a Bloomberg news story I read...

Increasingly, investors are placing a lot of emphasis on idiosyncratic or stock specific risk. Depending on how this risk is calculated,...

December was an interesting month in Asia for two key reasons: 1. The BOJ’s yield curve control policy change on December 20, allowing...

Some investors have recently asked us about different factor performance measures, particularly the difference between rank ICs and pure...