Investing in hedge funds can seem, to the uninitiated, like gambling for rich folks, so it’s not surprising that one of China’s hedge fund pioneers is for betting men. The Hong Kong Jockey Club – one of the only places on Chinese territory where gambling is legal – was the first institutional investor in that city to get into alternatives, with US$164 million – 18% of its long-term portfolio – in HFs. Now, the private club is looking to expand its hedge fund investments to its other funds, adding a portable alpha component to its portfolio. “We don’t think conventionality will win the day,” club Treasurer Jacob Tsang tells Bloomberg News, and where the Jockey Club goes, others are likely to follow. “The Jockey Club is ahead of the curve in terms of sophistication,” fund of hedge fund manager Mark White says. Adds Naomi Denning of Watson Wyatt Worldwide, “It’s very common for other funds to look at what the Jockey Club does.”