Are there plenty of opportunities for arbitrage in Asia and which markets present the best?
Our strategy is perfect for today’s Asian markets as short-term liquidity is high, due to the issuance of covered warrants in Hong Kong, and the large and increasing retail activity generally across the Asian markets. In addition dividend yields are high and dividend growth is strong and above average in many blue chip companies in Hong Kong and Australia. As institutional and retail interest continues to return to the Asian markets, we expect the opportunities for our strategy to continue to increase. As I mentioned, our strategy is designed to take advantage of relative value differences in implied volatilities between say an index and a basket of component stocks. This strategy is uncorrelated to the markets’ direction and more a function of retail liquidity. If retail/general liquidity increases it is more favourable for our strategy, even if, or especially if this means high levels of market volatility. Our strategy performs best in the markets of Hong Kong, Australia, Korea and J
