Mulpha invests in Sun Hung Kai-linked investment fund

KUALA LUMPUR (Sept 2): Mulpha International Bhd (KL:MULPHA) has invested US$7 million (RM28.28 million) in SHK Latitude Alpha Fund, a multi-manager hedge fund portfolio, as part of its efforts to enhance risk-adjusted investment returns.

The subscription forms part of the group’s broader investment portfolio and the deployment of a limited portion of surplus funds, said Mulpha in a bourse filing on Wednesday.

Cayman Islands-based SHK Latitude was established as an investment fund in April 2021 and is a subsidiary of Hong Kong-listed Sun Hung Kai & Co Ltd.

SHK Latitude is a diversified global fund of hedge funds that seeks to generate risk-adjusted returns across market cycles. It targets double-digit returns under normalised market conditions while seeking to preserve capital during prolonged periods of market stress. Its estimated year-to-date performance up to July 2026 was 8.7%.

The investment is expected to contribute to the group’s future earnings, subject to the performance of SHK Latitude’s underlying funds, said Mulpha.

On the risks associated with the investment, Mulpha said these include market volatility, changes in interest rates, credit conditions and macroeconomic developments. As the fund invests in underlying hedge funds, its performance will also depend on investment strategies, portfolio construction and risk management practices.

The subscription is regarded as a related-party transaction as Lee Seng Huang is the executive chairman of both Mulpha and Sun Hung Kai. He is also a major shareholder of Mulpha.

Lee, together with his siblings, are trustees of the Lee and Lee Trust, a discretionary trust that owns a controlling interest in Allied Group Ltd. Allied Group, which is listed on the Hong Kong stock exchange, is the holding company of Sun Hung Kai.

Shares in Mulpha ended six sen or 2.08% lower at RM2.83 on Wednesday, giving the group a market capitalisation of RM880.6 million.

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