Investment Manager Overview
The Cavenagh Asia fund is largely focused on the rates, FX and derivatives markets in Asia. It operates in the most liquid products that can be comfortably priced and valued. It seeks to predict the changing probabilities of events, as reflected in the prices of underlying financial instruments, rather than predicting actual outcomes themselves.
With a lack of official policy tools and an absence of products priced off curves in Asia, the markets are vulnerable to bouts of optimism and pessimism as official intentions are misunderstood. Herein lies the opportunity set as the fund will look to establish asymmetric trades in over or under priced scenarios and then look to monetize them as the probabilities change.
It is remarkable that a science which began with the consideration of games of chance should become the most important object of human knowledge….The most important questions of life are, for the most part, really only problems of probability.
Pierre Simon de Laplace, Theorie Analytique des Probabilites, 1812
The Team
Cavenagh Capital’s two principals are Andrew Gale and Lee Ka Shao. Andrew Gale is a veteran of Morgan Stanley London and Singapore where he spent sixteen years in Fixed Income. Following this he was an early arrival at Dexion Capital, London where he established and grew the largest listed funds of hedge funds in the world. Lee Ka Shao is a veteran of JPMorgan in the Global Markets Trading division in New York and Singapore where he was a market maker and proprietary trader in the nascent Asian FX, rates and derivatives market from 1994 . Then at DBS Bank, Singapore from 2001, he managed a USD 1 Bln internal Asian macro fund for more than six years. Thomas Hoo is a senior Portfolio Manager with sixteen years experience in Asian markets with JP Morgan Singapore and Deutsche Bank Proprietary trading in Singapore and Hong Kong.
Website of Investment Manager: www.cavenaghcapital.com
