Funds

What does GAO stand for?

G.A.O literally means Global, Assets, Opportunities: the brand represents our investment philosophy to look globally for opportunities across asset types. The name was chosen as it can be pronounced as "gao" which means High in Mandarin. Our funds aim to produce High risk-adjusted returns when used in combination.

Are the funds regulated?

GAO Black Lotus Variable Capital Company (VCC) was incorporated in April 2020 under the Monetary Authority of Singapore (MAS) and the Accounting and Corporate Regulatory Authority (ACRA). The funds under the VCC structure are managed by GAO Capital, a Registered Fund Management Company, UEN 201004156M. Prior to launching these comingled funds, we have been managing Friends and Family capital and also advised a small number of large institutional-sized investors. GAO Capital has been under the regulation of MAS since 2010 when we moved the firm back from New York (where we were exempted under SEC regulations).

Why do you have different funds?

We recognize that the principals have differing risk appetites and so do our external investors. You can take advantage of opportunities in the equities space in our ASV and CAP Funds while maintaining stable returns uncorrelated to general equity markets in our BAA Fund. The proportion allocated to the various funds will also depend on the client's existing investment portfolio and view of the market.

Who should not invest in our funds?

While we would like all accredited investors to invest alongside us, we understand that we might not be suitable for investors who do what we do on a full-time basis and want to make every single position decision. We also cannot say for sure that we would always be better than institutional investors with a full team of experienced professionals. We do not profess to be the best stock picker - our strength lies in the experience of the team as a whole and investment process refined over two decades of actually being in the markets.

Always Seek Value (ASV) Fund

The ASV Fund is a long-only Asia equities fund with an ASEAN focus that seeks to invest in mispriced stocks. The investment process is built on deep fundamental research on a company-level as well as on-the-ground investing experience in the region.

Asymmetric risk/reward stocks are identified by focusing on capital cycles. Systematic investment process allows the investment strategy to be scalable and used globally. Valuation, both relative to peers and historical cycles, is a cornerstone of the investing strategy.

Click here to learn more about ASV.

Balanced Alternative Assets (BAA) Fund

The BAA Fund seeks to protect capital and generate attractive returns exceeding benchmark global bonds. The fund has a multi-manager multi-strategy portfolio across asset classes, dynamically allocated in liquid strategies with low correlation to equity markets.

The Fund aims to generate a return of 8-12% with a volatility of less than 5%.

Click here to learn more about BAA.

China A-shares Plus (CAP) Fund

The CAP Fund invests in quantitative long-only strategies in Chinese A-shares. The underlying strategies seek to capture pricing inefficiencies through analysis of historical patterns, with the aim of exceeding the MSCI China A Index by 10% annually.

The Fund manages capital directly and with external portfolio managers via managed accounts.

Click here to learn more about CAP.