Insynergy Investment Management, chaired by Dragons' Den judge James Caan, is launching a China fund.
The Insynergy Absolute China fund will launch in mid-April under Michael Lai, who also runs the Greater China Equity hedge fund at GAM.
Lai's hedge fund made 156.98% since launching in mid-2006, compared to 49.96% from the MSCI Zhong Hua index.
Insynergy's Dublin-domiciled Ucits III fund targets returns of 20% to 25% annually across the market cycle, and will be capped at $250m.
It will be long biased and invest primarily in securities issued by companies with either assets in, or revenues derived from, mainland China and Hong Kong.
Lai will also be able to sell short using derivatives.
The fund will identify top-down regional themes and overlay them with bottom-up research and stock selection to build a portfolio of between 15 and 70 positions.
Caan says: "GAM's long-term commitment to China and experienced investment team makes it, and Michael Lai, perfect partners for Insynergy.
"This is a great addition to our Insynergy Odey Fund, managed by Crispin Odey."
Spike Hughes, Insynergy's chief executive, says China presents an "exciting growth opportunity on a five-years plus outlook'.
"We believe a long-only investment strategy, 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."
Minimum investment in the fund is £2,500. The fund's initial charge is 5%, and its annual management charge is 1.25%. Lai must make more than three-month Libor before his fund earns a 20% performance fee.
