Ma Ziming, CEO of Xuehu Capital, said that although Xuehu reserves the right to go short, Xuehu still regards long US-listed stocks as a more valuable strategy.

"the strategy of the Snow Lake Fund is to always do more long than short. "he said."Last night, we greatly increased our positions, iQIYI, Inc.. At the same time, TAL Education Group is also an excellent company! As a long-term investor, we will continue to trust and support TAL Education Group. We bought nearly 100 million US dollars after trading yesterday. "

In Ma Ziming's view, there is nothing wrong with the fundamentals of most US-listed stocks. "these high-quality companies, excellent management, as long as concentrate, honest to do a good job in the main business, regardless of the unprovoked harassment of short-sellers. Believe that this is a fair market. "

As of press time, TAL Education Group was down 15 per cent before trading.

Who is Snow Lake Capital?

Burning Finance once stated in the report that "five participants in the short report told: how did we investigate Lucky": "(released by Muddy Waters for LUCKN COFFEE DRC)The actual producer of the short report is Snow Lake Capital, an investment management company.」

According to its website, Snow Lake Capital is a leading Asian alternative investment management company.Its assets under management amount to 2 billion US dollars.. The company was founded in 2009 and has offices in Hong Kong and Beijing.

Ma Ziming, founder of Snow Lake Capital, once worked for a New York-based hedge fund focused on investing in Asia and was in charge of China-related investment research. Prior to that, he worked for hedge fund Ziff Brothers (Ziff Brothers) and Credit Suisse first Boston. Ma Ziming holds double bachelor's degrees in mathematics and economics from the University of California, Berkeley.

In addition, Snow Lake Capital and Hillhouse Capital are very close. In 2009, Ma Ziming returned to China to establish Snow Lake Capital.And get the support of Zhang Lei, founder of Hillhouse Capital. "Zhang Lei is my earliest investor and my mentor. I respect him very much. "Ma Ziming said.

According to the company, Xuehu has established extensive contacts with Chinese companies and the government, producing high returns over a long period of time.

Sun Yiyi, son of Sunac China's chairman, Sun Hongbin, also has a strong relationship with Snow Lake Capital. He graduated from Boston College and worked as an analyst at Snow Lake Capital from October 2013 to May 2014 before joining the board of directors of Rong Chuang.

Prior to this, the media had carried out relevant reports on Snow Lake Capital:

Investment Strategy of Snow Lake Capital

Ma Ziming said that Xuehu Capital has a special research team to focus on the Internet and science and technology companies in China, and has a very detailed research division. "for example, financial technology, artificial intelligence, e-commerce, different industries have their own characteristics, research can not be generalized. The advantage of professional institutions lies in their ability to invest in research. "

In the process of choosing investment targets, Ma Ziming insists on two points: one is to study through an enterprise, and the other is to see whether the company can improve production efficiency, such as the proportion of industry profit margins brought about by innovative achievements. and whether the industrial chain shaped by innovation can be established.

Take the new energy vehicle industry, for example, my research team has been continuously following and tracking its development, but has not made a specific investment plan because of doubts about whether new energy vehicles can successfully replace traditional fuel vehicles. For example, China's burgeoning coffee industry in recent years, we have been watching it for more than a year, and the effectiveness of its business model and fundamentals is still under discussion. Many hedge funds set up investment companies in China in order to better understand Chinese companies and look for good investment opportunities. "

"Snow Lake Capital mainly invests in the Asia-Pacific region. In addition to the local China analysis team, there are also branches in Japan and South Korea to form the Asia-Pacific investment and analysis team. Investors chose us to attach importance to the huge development potential of the Chinese market and to the Asian market as a whole with the improvement of Asian economic integration in recent years. "Ma Ziming said.

The performance of Snow Lake Capital

At the end of last year, Snow Lake Capital revealed that it had maintained excellent growth for nine consecutive years during the period of market volatility.

Snow Lake Capital currently owns three overseas hedge funds, including an equity long hedge fund focused on investing in Chinese companies (established in February 2010) and an equity long hedge fund focused on investing in Chinese companies (established in September 2015). And an equity long-short hedge fund for the pan-Asian region (established in April 2018).

Equity long-short hedge funds, for example, have fallen 1.6 per cent compared with the MSCI Asia-Pacific benchmark index over the same period since its inception in April 2018. Snow Lake Asia has achieved a net return of 64.3 per cent, with a net return of 34.4 per cent by the end of 2018 and 22.2 per cent by the end of October 2019.

Xuehu has several important investments in China:

Haidilao International Holding:

Snow Lake Capital is the cornerstone investor of Haidilao International Holding, the hot pot track.

Haidilao International Holding listed in Hong Kong in September 2018. Cornerstone investors participating in this subscription include: Hillhouse Capital, Jinglin assets, Morgan Stanley Asset Management, Ward Ferry assets, Snow Lake assets, the smallest of these five asset management companies is Snow Lake assets. Hillhouse Capital subscribed for US $9000 and Xuehu assets subscribed for US $8000.

Quack feeding:

In addition to holding Haidilao International Holding in the hot pot track, Xuehu assets is also optimistic about another company in the Hong Kong stock hot pot track: Jiayu. In March 2016, Snow Lake Capital bought Kaifu shares for the first time. Now the total number of shares held by Snow Lake Capital is 81321000 shares, rising to 7.52%, making it the third largest shareholder, and the fourth largest shareholder is Hillhouse Capital.

TAL Education Group & Huazhu Hotel:

Snow Lake assets also revealed on the official website that they have long owned TAL Education Group, Huazhu Hotel, TAL Education Group is the leading company of K12 education and coaching in China, and Huazhu is the leading company of domestic hotel chains.