Green light for Jadeite

Jadeite CapitalÆs Asia-Pacific Absolute Return Fund is a new pan-Asia equity long/short fund. Greg Jones runs the hedge fund. For 12 years until late 2006, he worked in New York at Clay Finlay, an institutional investment manager of global equities.

The fundÆs NAV has risen 21.2% since establishment, and in the first three months of 2008, it has returned 3%. Target volatility is 10% but so far the fund has generally averaged around 8%.

Jadeite operates with maximum gross positions of 300%, with net exposure of minus 20% to plus 80%, but more recently has been between minus 20% and plus 60% net long.

The fundÆs strategy is to establish long-term positions in early- and mid-stage franchise growth enterprises and then take positions in undervalued growth companies relative to their future prospects, profitability and cash generating capability. Jones will be shorting or avoiding market-favourites and mature growth companies.

Paul SmithÆs alternatives venture, Alternative Asset Partners, has helped seed the fund with a $25 million investment and assets under management are now $27 million. Target size of the fund is $1 billion.

The fundÆs prime broker and administrator is Goldman Sachs. The auditor is Ernst & Young. Legal Advisors are Maples & Calder and Alston & Bird.