One of Asia’s Oldest Hedge Funds Buys Distressed China Debt

Apartment blocks under construction in Xining, Northwest China’s Qinghai province, on Sept. 28. Photo: Bloomberg

(Bloomberg) — LIM Advisors, one of Asia’s oldest hedge funds, is picking up distressed bonds of Chinese developers as the fallout from China Evergrande Group deepens.

George Long, the firm’s founder and chief investment officer, said LIM has been snapping up a “little bit” of such debt but is staying away from bonds of Evergrande because of its complex structure with both offshore and onshore securities and risks that can’t be gleaned from the balance sheet.