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 equities fund that seeks to invest in mispriced stocks.
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 aims to produce consistent returns of 8-10% across market cycles by investing in 8-12 funds managing in total more than $10bn in assets across diversified systematic strategies with low correlation to equity markets.
The Fund follows the same investment strategy as an internal portfolio which has historically annualized low double digits.
Click here to learn more about BAA.
China A-shares Plus (CAP) Fund
The CAP Fund is an offshore long-only equities fund which aims to produce annualized returns 15% in excess of China benchmark indices. The Fund manages capital directly and with external portfolio managers via managed accounts.
The CAP Fund senior team is fluent in Mandarin to be able to capture opportunities effectively.