Shanghai Chaos Investment, arguably one of the coolest-named asset managers currently out there, ironically got caught in Shanghai’s chaos the past few months.
According to Reuters, two of firm’s funds posted serious losses since the Shanghai Composite’s mid-June peak. Chaos Value 1, the firm’s $17.3 million 20-year fund, lost a staggering 63% during that time frame, while Chaos Value 2, an open-ended, $440 million fund, lost a whopping 33%. Reuters does add however, that the former is still up 50% since its July 2014 launch.
The funds apparently took a beating when commodity prices – as well as stock index futures – plummeted alongside the Chinese equity markets.
The firm does seem upbeat on their prospects though:
“Excessive panic after the market slump is a huge risk, just like excessive optimism was during the market surge,” Chaos said in the letter. “We have opportunities to buy those equities that match our values at low prices.”
Photo: John Koetsier