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CIC Picks New Chief for Hedge Investments

According to Wall Street Journal, “China’s sovereign-wealth fund has brought in a China-born portfolio manager with U.S. experience to run its hedge-fund investments, according ++to people familiar with the situation, marking its highest-profile hire so far.

Bill Lu, formerly a portfolio manager at U.S. hedge fund Tudor Investment Corp., has become a managing director at China Investment Corp. with responsibility for investments in hedge funds and hedge-fund-like investments in public-market securities, according to these people.

Mr. Lu, the third official to oversee CIC’s hedge-fund program since 2007, takes over the hedge-fund portfolio from Felix Chee, a Singapore native and former chief executive of the University of Toronto’s endowment fund. Mr. Chee is continuing to work at CIC as a special adviser to CIC’s chief investment officer, Gao Xiqing, according to a person familiar with the situation. It is unclear what prompted the change in Mr. Chee’s responsibilities. CIC’s recruitment efforts have so far focused mostly on taking staff from other Chinese government agencies to fill senior roles, hiring junior staff from investment banks to fill junior spots, and borrowing staff to fill in other gaps. Because it is state-owned, CIC isn’t able to offer salaries or bonus structures comparable to international financial firms.”

read more: Wall Street Journal

Institutional Investors Remain Skeptical as Bitcoin Continues to Rise

Bitcoin has continued to rally over the past month – hitting a record US$ 8,224 in the early hours of November 20 – and institutional investors are beginning to take notice of the cryptocurrency’s increasing popularity. With a market value of more than US$ 130 billion, the digital currency has seen unprecedented growth of over 700% over the past year. But Bitcoin’s rise has also been marked by a number of volatile slumps, leaving institutional investors divided over its durability as a long-term store of value and wondering whether to get in on the action. Despite these headwinds, more than 100 hedge funds have been formed to trade in digital currencies.

Split Consensus on Wall Street

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3 Reasons Why Other Sovereign Funds Will Not Dump Oil Stocks

Norges Bank informed the country’s ministry of finance to recommend the wealth fund to remove oil and gas listed equities from the fund’s benchmark index. The central bank came to the conclusion that Norway’s Government Pension Fund Global (GPFG) would be less vulnerable to a permanent drop in oil prices if the wealth fund was not invested in oil and gas listed equities. For some academics there are arguments that wealth funds should diversify away from their sources of wealth. Contradictory studies have demonstrated that wealth funds should support industries that enhance the country’s sources of wealth. For example, earlier on, Norway’s fossil fuel wealth was buoyed by increased capital investment to the oil sector to increase output, a pre-cursor to the wealth fund’s explosive growth.

1. Stock Performance
For some sovereign investors, investments in master limited partnership in oil and gas have been strong driver of returns, or even in smaller fossil fuel listed companies. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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GIC Financially Backs Innovation Precinct Project in Melbourne

Singapore’s GIC Private Limited acquired a majority interest in a joint project located in Melbourne, Australia. The joint project is between Sydney-based Lendlease, Australia-based Urbanest and GIC. In 2014, the project was labeled Carlton Connect Initiative with the goal of being an innovation hub.

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