Chinese Hedge Fund Responds to Investor Ire After 34% Loss
- Loyal Valley investors grilled firm in letter to regulator
- Manager denies wrongdoing, cites ‘irrational’ requests
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Chinese asset manager Loyal Valley Capital Co. responded to pushback from clients who lost a third of their money on a product last year, as the 70 billion yuan ($11 billion) manager became the latest target of investor ire.
One of the firm’s hedge funds allegedly deviated from its theme of tech- and consumer-stocks, while repeated requests for dialogue with fund manager and founder Lin Lijun were rejected as losses mounted, local media reported, citing a letter from an unnamed group of investors addressed to the nation’s securities regulators.