INSYNERGY has chosen to partner with GAM in launching the INSYNERGY Absolute China Fund. The Company will offer exclusive access to the long/short talents of Michael Lai, for the very first time. Lai has hitherto been available only to the hedge fund community, and the new Fund has been designed to share many of his hedge fund’s characteristics.

Commenting on the launch, Spike Hughes, CEO and Founder of INSYNERGY said, “China presents an exciting growth opportunity on a ‘5 years plus’ outlook. Few would deny this, but there are those who say we are entering a market bubble. We would say to those looking to participate in a robust growth opportunity, who are looking for double-digit return potential, to diversify away from bankrupt Western economies and to recoup investment losses, that the question they should be asking themselves is not whether this is necessarily the perfect time to be investing in the Chinese market, but whether they can afford to be out of China on any long-term view?

“Investor concern over volatility and market timing is understandable, but the notion that we are somehow living with one large homogenous bubble is alarmist and to misunderstand the Chinese market. Many Chinese provinces are larger than the entire UK, each with its own dialects, each presenting its own very individual opportunities. We do expect to see volatility in the region, and we have therefore opted for a (long biased) long/short investment strategy. We believe a long-only investment strategy, run by other existing funds and the preferred choice of some new market entrants, to be an inappropriate strategy for running money in this region. By shorting stocks or the market we will increase predictability, and we would encourage investors to park their fears and to invest with confidence.”

GAM and INSYNERGY are keen to preserve Lai's ‘alpha’ generating ability, and the new Fund has therefore been limited to $250m.

Lai will identify top-down regional themes and overlay them with rigorous bottom-up company research and stock selection, an investment strategy that has delivered outstanding returns on the unregulated ‘GAM Greater China Equity Hedge Fund’.

This Fund has delivered a return of 156.98% from launch (31 July 2006) to 29 January 2010, comparing favorably with a 49.96% return from the MSCI Zhong Hua index. The new Fund is targeting a risk-adjusted absolute return over the market cycle in the region of 20-25% per annum. Lai will manage the Fund with a completely unconstrained mandate (subject to UCITS regulations).

Hughes said, "I am delighted that we have been able to secure exclusive access to the services of one of the world's most sought after managers. People often talk about ‘missing the elephant in the room’, but for the UK fund management industry to have offered so few ways to invest in China over the years smacks of missing the trumpet playing, unicycle riding elephant in the room.”

James Caan, Chairman of INSYNERGY said, “We launched the Company with one specific objective in mind - to identify the ‘unmet wants and needs’ of investors and find truly world class solutions to address them. Through GAM we have discovered a true hidden gem. Their long-term commitment to China and the work of their deeply experienced investment team makes GAM and Michael Lai perfect partners for INSYNERGY and its investors. This is a great addition to our INSYNERGY Odey Fund, managed by the legendary Crispin Odey.”

Commenting on the new launch, Craig Wallis, Group Head of Institutional & Fund Distribution of GAM said, "We are thrilled to be partnering with INSYNERGY. It is refreshing to work with an investment business so focused on meeting unmet investor needs.”