Hedge Fund/ Private Equity Firms in Vietnam

[houxtht]

Does anyone know that if it is possible to get a list of all the mutual funds/hedge funds/private equity firms that are currently investing in Viet Nam? Thank you!

[Khoa Tran]

Hoa, I guess that if you start up such a fund, you're one of the first in Vietnam. I'll then support your investment .

To the best of my knowledge, of the biggest investment funds in Vietnam: I don't know much about Dragon Capital. Vina Capital has a small Proprietary Trading team and this seems to be the only or one of the vew few financial engineering teams in VN right now.

My knowledge on the local market is quite poor so I'll leave the ground for experts here.

[pat]

Hi guys,

This is an excerpt from mekongcap website. Hope that it helps.
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Broadly, the funds operating primarily in Vietnam can be categorized as follows:


Funds focusing on Private Equity
Mekong Capital's Mekong Enterprise Fund, Ltd. (2002)

Mekong Capital's Mekong Enterprise Fund II, Ltd. (2006)


Funds focusing on Technology and Venture Capital
IDG Venture's IDG Vietnam Ventures Fund (2004)

VinaCapital's DFJ-VinaCapital LP (2006)


Fund focusing on Real-estate
Indochina Capital's Indochina Land Holdings (2005)

VinaCapital's VinaLand (2006)


Funds focusing on public equities, equitized companies and opportunistic investments
Dragon Capital Management's Vietnam Enterprise Investments Ltd. (VEIL) (1995)
PXP Vietnam Asset Management's PXP Vietnam Fund Ltd (2003)
VinaCapital's Vietnam Opportunity Fund (2003)
Dragon Capital Management's Vietnam Growth Fund Limited (2004)
Viet Fund Management's Vietnam Securities Investment Fund (VF1) (2004)
PXP Vietnam Asset Management's Vietnam Emerging Equity Fund (2005)
Finansa's Vietnam Equity Fund (2005)
Prudential Vietnam Securities Investment Fund Management Company's Vietnam Segregated Portfolio Fund (2006)
Dragon Capital Management's Vietnam Dragon Fund (2006)
Vietcombank Fund Management Company's Vietcombank 1 Fund (2006)
BIDV-Vietnam Partners' Vietnam Investment Fund (2006)
Vietnam Holding Asset Management Company's Vietnam Holding Limited (2006)
Korea Investment Trust Management's Vietnam Growth Fund (2006)
Korea Investment Trust Management's Worldwide Vietnam Fund (2006)
Kamm Investment Company's Kamm Investment Holdings (???)
Golden Bridge Financial Group's Vina Blue Ocean Fund (2006)
Jardine Fleming's JF Vietnam Opportunities Fund (2006)
Deutsche Bank's DWS Vietnam Fund (2006)
Blackhorse Asset Management's Blackhorse Enhanced Vietnam Inc (2007)
Deutsche Bank's DWS Vietnam Fund (2007)
Jardine Flemings' JF Vietnam Opportunities Fund (2007)
PXP Vietnam Asset Management's Vietnam Lotus Fund (2007)
Indochina Capital's Indochina Capital Vietnam Holdings (2007)
Mekong Capital's Vietnam Azalea Fund (2007)

[hoangngocthach]

Hi all,
The number of funds increases significantly after the success of Vietnam Stock exchange market in 2006. They are around 70 funds at this moment.

It is interesting to discuss about the investment strategy of each fund and analyze its' influence on VN SE Market
- For ex if a fund sell a big number of stocks will influence on the VN Index
- Other discussion that the blue-chips(FPT, REE, ...) in Vietnam now is at very high P/E indicators (>50 for some), so is it profitable if they invest in these blue-chips?
- IPO is accelerated under pressure of VN government will increase the diversity of the market but at what level ? Because offer < need will increase the stock price (so VN Index) and of course offer > need will decrease it, what is the balance level ?

How do you think ?

Thach

[dexter8310]

1. Supply/Demand rule applies here. Price of those stocks will drop obviously, but the effect on VN Index is unknown. If those stocks are used to calculate VN Index, it will bring down VN Index. If only small portion of them belongs to VN Index, or those stocks are not leading, the impact may be minimal. It also depends on the value of selling out, weight of stocks in VN Index, market situation ...
2. How do you define 'profitable' ? P/E indicator reflects investors' expectation for companies' growth . If those companies have good potential to accelerate their earnings in future, P/E will be higher than market average. It also depends on each industry. e.g. P/E in Hi-Tech is often higher than others, etc... So you can say if blue-chip company can double their earning, P/E may drop to 25 mathematically ...
If you are short term investor, you can just wait for the price to go up and sell that stock to gain profit. If you are long term investor, P/E should not exceed 1/interest rate in the most simple calculation. If you've already owned the stocks, you may care only about your buying price, which you bought the stock, not the current price ... Hence currently high P/E doesn't really matter to you .
3. I don't know . Probably they have to estimate how attractive the market is, how much more money investors are willing to pour in, etc...

[Blank]

I think it is obvious that most funds can greatly influence the index, for example at the end of every quarter, most funds tend to dump their long positions, so they can calculate bonuses and therefore will generally submit the index to a day of decline or two. As for tracking or analyzing the effect of each fund in general however,

It is interesting to discuss about the investment strategy of each fund and analyze its' influence on VN SE Market

it seems this would be impossible as you can never be certain which trades are being generated by whom.

Are most of you guys short term trading using technical analysis or investing in stocks using fundamentals? If you are trading with technicals who is taking it one step further and quanting their trading models. Which software are you using?