BFAM Partners
| Company type | Private |
|---|---|
| Industry | Hedge fund management |
| Founded | April 2012 |
| Founder | Benjamin Fuchs |
| Headquarters | Hong Kong , Hong Kong |
Key people | Benjamin Fuchs (Founder) |
| Products | Hedge funds, multi-strategy investments |
Number of employees | 99 (2021) |
| Website | bfampartners |
BFAM Partners (BFAM) is a hedge fund management company headquartered in Hong Kong, with a focus on investments in China, particularly in the sectors of high-yield property debt and distressed securities.
Background
Established in April 2012 by Benjamin Fuchs, who previously led the Global Opportunities Group proprietary trading desk at Nomura Holdings, BFAM introduced its multi-strategy hedge fund on 1 June 2012, supported by Nomura.[1]Cite error: The opening <ref> tag is malformed or has a bad name[2]
During its inaugural year, BFAM secured a 31.6% return, primarily driven by strategic positions in the Chinese bond market.Cite error: The opening <ref> tag is malformed or has a bad name The firm capitalized on the 2015–2016 Chinese stock market turbulence by taking positions anticipating a limited yuan devaluation.[1]Cite error: The opening <ref> tag is malformed or has a bad name
In January 2016, BFAM collaborated with Farallon Capital in the debt restructuring process of Chinese property developer Kaisa following its $2.5 billion bond default.[1]Cite error: The opening <ref> tag is malformed or has a bad name[3]
By June 2016, BFAM had sold credit default swaps on Noble Group amidst allegations of accounting irregularities and subsequently became an investor through its involvement in the company’s 2018 debt restructuring.[1]Cite error: The opening <ref> tag is malformed or has a bad name
As of December 2016, BFAM was recognized as one of Asia’s leading hedge funds, largely due to successful transactions involving Kaisa and Noble Group.[3]
Between 2012 and 2021, BFAM consistently delivered positive annual returns, achieving a 12.5% annualized gain. At its asset management peak in May 2021, the firm oversaw $5 billion with a workforce of 99 employees. Nevertheless, the 2020–2022 Chinese property sector crisis resulted in losses of 11% in 2021 and 26% in 2022 due to substantial exposure to underperforming Chinese real estate bonds amid limited government intervention. This downturn triggered investor withdrawals and workforce downsizing.[4][5][6][7]
To mitigate risk, BFAM segregated illiquid Chinese credit holdings into a side pocket to prevent forced sales and shifted its investment emphasis toward more liquid assets such as equities, currencies, convertible bonds, and block trades. Additionally, the firm aimed to reduce assets under management to between $1.5 billion and $2 billion.[4][5][7]
In late 2022, BFAM established a London branch to accommodate employees relocating from Hong Kong due to COVID-19 restrictions; however, this office was closed by June 2023 following the easing of those restrictions. The New York office had been shuttered earlier in 2022.[6]
Amid improving market conditions linked to China’s COVID-19 reopening and enhanced government support for the property market, BFAM recorded a monthly return of 7.5% in February 2023.[4]
In April 2023, BFAM joined Davidson Kempner Capital Management and other investors in initiating legal action in New York against Chinese developer Glory Health concerning $201 million in outstanding debt.[2]
External links
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