The Zeal China Fund is a long/short equity fund that makes investments in companies with business related to China seeking long-term, risk-adjusted returns.

The fund has been a strong performer and impressed with a clear articulation of its philosophy for a China-focused hedge Fund making concentrated high conviction investments. Across a portfolio of between 30-44 holdings, portfolio turnover had been above 81% in the past three years.

During the COVID-19 related economic dislocation in early 2020, the Manager detailed its active portfolio management strategy, which supported outperformance, while managing risk. A view was taken that the virus impact would be temporary for some, and stronger companies would enjoy a superior operating performance. Further, the short book should be substantially increased in February over January. Both tactics contributed to solid outperformance.

In terms of ESG, it is considered in investment screening. However, ESG is not a deciding factor for making investment decisions due to the emphasis on performance and Fund investor preference.

This fund has been reviewed by four industry veterans of the Benchmark judging committee.