Hong Kong-based Sun Hung Kai & Co. has committed capital into the ActusRayPartners European Alpha Fund, which seeks to raise US$100 million in the next few months. The fund focuses on listed equities in the European time-zone markets.

With over 35 years of investment experience, ActusRayPartners employs an investment process called discretionary probabilistic investing, which has a quantitative base with a discretionary edge to handle situations that may be problematic for a pure systematic process. Underpinned by proprietary quantitative systems and analytical tools, the fund seeks to generate meaningful levels of alpha and strong risk-adjusted returns.

The team is co-founded by Andrew Alexander, Raymond Chan and Patrick Cheung. They are joined by others also from the Macquarie Quant Hedge Funds’ front-office as well as an experienced non-investment team.

In addition to the ActusRayPartners European Alpha Fund, SHK & Co. has also made commitments to East Point Asset Management and E15 VC in the past two months through its funds management platform.

Lindsay Wright, chief executive officer of SHK funds management, says: “SHK & Co. sees three key advantages of ActusRayPartners’ investment style. One, the fund is focused on Europe where there is a great degree of alpha generation. Two, the depth and quality of these quantitative models will be overlaid with judgement, which is a differentiating factor. Three, we have confidence that the team, having worked together previously and having spent 18 months preparing for this launch, can deliver.”

ActusRayPartners managing director Andrew Alexander adds: “ActusRayPartners quantitatively identifies potential opportunities by processing large amounts of data that would be impossible for a human to handle. Then, on a discretionary basis, we make adjustments allowing for new and evolving environmental or stock-specific issues. The risk control we can offer, by holding a large number of small positions, sets us apart from other discretionary managers.”