Renowned activist hedge fund Elliott Management has closed its Hong Kong office with Tokyo remaining as its only base in Asia.
Elliott Management will exit the Hong Kong market, according to a «Financial Times» report citing a memo, shifting existing staff to its offices in London and Tokyo.
The decision to wind down was first made in early 2018 before the civil unrest in 2019 and the implementation of the national security law in 2020, the report separately said citing anonymous sources, but noted that other unnamed hedge funds were already making plans to shift staff and some operations to alternative Asian cities.
15 Years in Hong Kong
The activist fund was founded in New York in 1977 by billionaire Paul Singer and first established a presence in Hong Kong 15 years ago.
As one of the largest and oldest hedge funds around the world, it has launched dozens of campaigns including a six-year battle with Hong Kong’s family-owned Bank of East Asia over accusations like board mismanagement and shareholder misrepresentation.
Hedge Fund Center No More?
Although Elliott made its decision prior to unrest in Hong Kong, other rival hedge funds have already reportedly expressed concerns about challenges under the new regime including free flow of information, investor freedom for activists and short-sellers or difficulties with obtaining visas.
«It's impossible to think [the national security law] won't have a huge impact,» said an unnamed source. «Mainland Chinese regulators are known for targeting foreign entities when markets fall.»
According to the «Financial Times» report, other hedge funds are already planning to shift staff and parts of their operations to other cities in Asia.
