Singapore Hedge Fund

Alternative asset management in Singapore

Singapore's 10 and Asia's 25 biggest hedge funds

Here are Singapore biggest hedge funds as of April 1, 2009

1. Artradis Fund Management (Singapore) US$2.722bn
2. Arisaig Partners (Singapore) US$1.996bn
3. Target Asset Management (Singapore) US$1.400bn
4. Aisling Analytics (Singapore) US$1.186bn
5. JL Capital (Singapore) US$618m
6. Symphony Financial Partners (Singapore) US$600m
7. Asia Genesis Asset Management (Singapore) US$599m
8. Lapp Capital (Singapore) US$500m
9. UG Investment Advisers (Singapore) US$496m

Asia’s 25 biggest hedge funds as of April 1, 2009
1..Sparx Group (Tokyo) US$4.82bn
2. Value Partners (HK) US$3.19bn
3. Artradis Fund Management (Singapore) US$2.722bn
4. ADM Capital (HK) US$2.2bn
5. Arisaig Partners (Singapore) US$1.996bn
6. Penta Investment Advisers (HK) US$1.910bn
7. Pacific Alliance Investment Management (HK) US$1.450bn
8. Target Asset Management (Singapore) US$1.400bn
9. Aisling Analytics (Singapore) US$1.186bn
10. Ortus Capital Management (HK) US$805m
11. LIM Advisors (HK) US$800m
12. Tree Line Investment Management (HK) US$760m
13. JL Capital (Singapore) US$618m
14. Sofaer Capital (HK) US$610m
15. Symphony Financial Partners (Singapore) US$600m
16. Asia Genesis Asset Management (Singapore) US$599m
17. Tower Investment Management (Tokyo) US$581m
18. Ward Ferry Management (HK) US$575m
19. Income Partners Asset Management (HK) US$520m
20. Lapp Capital (Singapore) US$500m
21. UG Investment Advisers (Singapore) US$496m
22. Argyle Street Management (HK) US$458m
23. Abax Global Capital (HK) US$455m
24. Brooke Capital (HK) US$450m
25. Asuka Asset Management (Tokyo) US$428m
Source: this document

Jean Viry-Babel
senior partner
VBK partners

Filed under: hedge fund ranking, , , , , , , , , , , , , , , , , , , , , , , , ,

Singapore’s 10 and Asia’s 25 biggest hedge funds

We are Migrating the blog here: http://singaporehedgefund.com – faster, better,bigger…….

Here are Singapore biggest hedge funds as of April 1, 2009

1. Artradis Fund Management (Singapore) US$2.722bn
2. Arisaig Partners (Singapore) US$1.996bn
3. Target Asset Management (Singapore) US$1.400bn
4. Aisling Analytics (Singapore) US$1.186bn
5. JL Capital (Singapore) US$618m
6. Symphony Financial Partners (Singapore) US$600m
7. Asia Genesis Asset Management (Singapore) US$599m
8. Lapp Capital (Singapore) US$500m
9. UG Investment Advisers (Singapore) US$496m

Asia’s 25 biggest hedge funds as of April 1, 2009
1..Sparx Group (Tokyo) US$4.82bn
2. Value Partners (HK) US$3.19bn
3. Artradis Fund Management (Singapore) US$2.722bn
4. ADM Capital (HK) US$2.2bn
5. Arisaig Partners (Singapore) US$1.996bn
6. Penta Investment Advisers (HK) US$1.910bn
7. Pacific Alliance Investment Management (HK) US$1.450bn
8. Target Asset Management (Singapore) US$1.400bn
9. Aisling Analytics (Singapore) US$1.186bn
10. Ortus Capital Management (HK) US$805m
11. LIM Advisors (HK) US$800m
12. Tree Line Investment Management (HK) US$760m
13. JL Capital (Singapore) US$618m
14. Sofaer Capital (HK) US$610m
15. Symphony Financial Partners (Singapore) US$600m
16. Asia Genesis Asset Management (Singapore) US$599m
17. Tower Investment Management (Tokyo) US$581m
18. Ward Ferry Management (HK) US$575m
19. Income Partners Asset Management (HK) US$520m
20. Lapp Capital (Singapore) US$500m
21. UG Investment Advisers (Singapore) US$496m
22. Argyle Street Management (HK) US$458m
23. Abax Global Capital (HK) US$455m
24. Brooke Capital (HK) US$450m
25. Asuka Asset Management (Tokyo) US$428m
Source: this document

Jean Viry-Babel
senior partner
VBK partners

Filed under: hedge fund, , , , , , , , , , , , , , , , , , , , , , , , ,

Flowering Tree Investment Management chooses LaCrosse Global Fund Service

LaCrosse Global Fund Services has won a mandate to provide fund administration services to the Flowering Tree Investment Management funds.

The Singapore-based Asian-equities hedge fund started trading in May 2009 and is led by Rajesh Sachdeva. Previously he was co-founder of New York-based Sansar Capital Management, an Asian equities hedge fund manager that managed over $3 billion at its peak.

Flowering Tree Investment Management is reported to be planning to expand its newest Asian equities hedge fund which was seeded with $12.5 million from founders, family and friends.

The fund is set to grow to $15-$16 million by July and is looking to hit $200-$300 million by 2011 and has the capacity to grow to over $1 billion. Flowering Tree’s new fund’s equity long-short strategy is more likely to succeed this year and next year than in 2008.

LaCrosse Global Fund Services provides operations, middle-office and administration services to managers of complex hedge funds globally.

Jean Viry-Babel
senior partner
VBK partners

Filed under: service provider, , , , ,

Betting on the the best performance for 10 years?

It is not just about green shoots anymore…Hedge funds will likely deliver their best first-half performance in a decade, as investors renew their faith in the sector in the wake of last year’s disastrous losses. According to Hedge Fund Research (HFR), the Chicago-based research firm that compiles daily statistics on performance, Hedge funds worldwide returned 5.63 per cent to their investors in the year to last Thursday.

Strategies that forecast big directional market moves made profits of 12.52 per cent over the period as equity markets in Europe, the US and Asia-Pacific posted strong gains and liquidity gradually returned to the credit markets. Actually, confidence in hedge funds returned in a single day in March, when the US Government unveiled the second strand of its Trouble Asset Relief Program, said one hedge fund chief executive.

Toscafund, the West End fund run by former Commerzbank banker Mehmet Dalman, was most recently understood to have improved by more than 50 per cent since January.

According to HFR, energy hedge funds, convertible arbitrage and Asia investment funds have all posted strong gains this year. Besides, hedge fund investors lost an average of 18.9 per cent last year, as the sector plunged to its second annual loss and confidence in alternative asset management hit rock bottom.

HFR said that the total funds under management, which at its peak topped $2 trillion, decreased to below $1.5 trillion, as panic-stricken investors rushed to take back assets. In addition, Man Group, Brevan Howard, Lansdowne, Marshall Wace and CQS have announced their opposition to an EU draft policy on Alternative Investment Fund Managers, which they say is flawed and has been rushed through with little consultation.

The proposed directive, which has caused consternation across the industry, imposes severe new reporting requirements on funds and regulates them and their managers as never before.

with e-commerce journal

Jean Viry-Babel
senior partner
VBK partners

Filed under: opinion, , , , , , , , , , , , ,

The first video of this Blog

This was 3 days ago on Bloomberg:

Hedge funds saw net inflows in May for the first time in 10 months.



Jean Viry-Babel
senior partner
VBK partners

Filed under: video, , , , ,

A(nother) great blog on the Hedge Fund world

Hedge Fund Law BlogHedge Fund Law Blog

I’ve been reading this blog for the past few month and it is one of the best source of information for anything Legal on the world of Hedge Funds.

These guys will answer any questions you might have… well, almost.

Give them a go.

Jean Viry-Babel
senior partner
VBK partners

Filed under: blog, ,

big potential in Asia debt: Hedge Fund to cash in…

NEW YORK (Reuters) – As hard-hit Western banks and hedge funds scramble to sell their Asian loans and bonds, one newcomer expects to pick up these choice assets at rarely seen discounts.

Opvs Group is launching two Asia-focused credit funds designed to benefit from the region’s underlying growth potential by acquiring debt at prices depressed by the global financial crisis.

That’s a classic opportunity, said Barry Dick, who left Merrill Lynch last year as its Asia head of debt products distribution and co-founded Opvs.

“Asia has been sold off in line with the rest of the world. It really looks like a case of the baby thrown out with the bathwater,” Dick said in an interview.

Dick founded the Singapore-based firm with three other Asia veterans: Chris Francis, who ran Asian credit and later equities research at Merrill; Sandeep Gill, former global credit derivatives head at DBS Group Holdings Ltd; and Tommy Kim, co-founder of Singapore-based HFG Investments Pte.

This team spent the past year building a 25-person firm that will be dedicated to the region and, for now, one asset class.

“There are a lot of boutique operations in the region — five guys in a garage and a prime broker — but we wanted to build a large asset management company, the best in Asia, with very specialized investment teams.”

Opvs is rolling out two funds in the coming month.

First will be the Opus Asia Opportunity Fund, which will snap up loans from closely held, high-growth companies in a region reaching from China, Japan and Southeast Asia to India and Australia.

It has been seeded with $50 million and will complete its first round of fund-raising on Tuesday, but will continue adding money through the fall.

The fund will hold these credits until maturity, with proceeds paid out as distributions after one year and then every six months until all the loans mature.

Later next month Opvs will launch Fundamental Asia Credit Fund with $50 million initially and growing to a maximum $300 million. The fund will invest in highly liquid and publicly traded bonds and short bonds through the swaps market.

In a sign of the times, both funds will provide shareholders with Internet access to their portfolio holdings.

In contrast to just a year or two ago, when Asia was a top priority for every Western bank and fund manager, the fast growing region has become a lot less crowded. These same investors have been forced to shed portfolio holdings and often turn first to their Asian assets.

The potential returns on these investments are high, Opvs says, because loans extended by big banks like Merrill, Goldman Sachs and Morgan Stanley during the boom years of 2005 through 2007 are now being sold off at fire-sale prices.

In recent months, emerging markets funds have become a hot item in the hedge fund community. Still, for the relative few prepared to step in today, what was a sellers’ market quickly has became bargain city.

“There’s been a big shakeout since the credit crunch,” Francis said. “That’s left us in a situation where there is an excess of sellers of credit, or people holding credit, but not a lot of people who have balance sheets to take up that capacity.”

Jean Viry-Babel
senior partner
VBK partners

Filed under: hedge fund, , , , , , , , , , , , ,

A new credit hedge fund in Singapore: SaKa Capital

Another day, another Credit Hedge Fund… I am starting to see a pattern here 😉

June 26 (Bloomberg) — Assan Din, a former Lehman Brothers Holdings Inc. credit trader, is setting up a hedge fund to trade corporate bonds and derivatives in Asia.

SaKa Capital’s fund, which will have a capacity of more than $500 million, will start in September with $25 million to $50 million sourced mainly from founding members and friends, Din, 38, said. The Singapore-based firm will subsequently raise capital from institutional investors, including U.S. pension funds and endowments, once it builds a track record, he added.

“We chose Asia because we believe over the next few years there will be a lot of great opportunities to make money in the credit markets here,” Din, who ran Lehman’s credit trading businesses in Europe and Asia from 1998 till 2006, said yesterday. “If there is any region that is going to grow, it will be Asia.”

SaKa Capital, named after the ancient nomadic tribe that conquered parts of Asia, is seeking to take advantage of trading opportunities in credit markets as financial companies become more averse to risk. Financial institutions worldwide have reported almost $1.5 trillion of losses since the U.S. subprime mortgage market collapsed, data compiled by Bloomberg show.

“The days of large principal businesses at banks competing with hedge funds is over for the foreseeable future,” Din said. “Banks and existing funds are suffering from illiquid legacy positions on their balance sheets and hence are handicapped to take advantage of the credit opportunity today.”

Uncertainty, Opportunity

The SaKaCapital Liquid Credit Fund will target annual returns of about 15 percent, with “moderate leverage,” said Din, who joined Lehman in 1997 as a credit derivatives trader in London. Lehman in September filed for the biggest bankruptcy in U.S. history.

He headed European and Asian operations for Lehman’s $8 billion global principal strategies group, and helped set up R3 Capital Management LLC in May last year when Lehman spun out the unit. He left R3 before the hedge fund was taken over by New York-based money manager BlackRock Inc. in April this year.

Din was Lehman’s London-based head of European credit trading from May 2004 to June 2006, after running the bank’s credit trading business in Asia outside of Japan for six years.

The fund will trade corporate bonds and derivatives, convertible debt, credit indexes as well as options, focusing on securities that are liquid, or are easily traded, Din said. It will also use equities markets to hedge.

“There’s still a lot of uncertainty in the markets and a lot of opportunity to make money right now, particularly in credit markets,” Din said. “It’s a great time to make money in the markets; it’s not the best time to raise money.”

Benchmark gauges of corporate credit risk rose earlier this week after the World Bank warned the global recession will be deeper than previously forecast.

Jean Viry-Babel
senior partner
VBK partners

Filed under: new fund, , , , , , ,

Investing in hedge funds in emerging markets.

Here is a very good analysis from the guys at Allaboutalpha.com. I particularly like the conclusion:”using hedge funds to implement emerging market conviction is much more likely to generate attractive returns over the investment horizon than a passive investment”…

After being beaten up along with most hedge fund strategies in 2008, emerging markets hedge funds are roaring back this year along with the fortunes of their target regions.  Hedge Funds Review reports that,  “While prone to volatility, emerging markets hedge funds have historically posted strong gains following market bottoms. In the 12 months following the trough of each of the five largest performance declines, funds have produced an average gain of 23.3%.”

And Citigroup recently told Bloomberg News, “There is going to be an outsized investment back into Asia. Some of the big pensions are going to be looking at Asia; it’s coming onto the radar screens.”

We wondered if this was just a matter of emerging markets beta, or whether emerging markets hedge funds provide added value? For a perspective on this, we turned to our resident emerging markets expert, Peter Douglas, for more. As many of you are aware, Peter is the founder of Singapore-based hedge fund consultancy GFIA, and is a regular contributor to AllAboutAlpha.com.

Special to AllAboutAlpha.com by: Peter Douglas, CAIA, Principal, GFIA pte ltd.

For long-term investors, hedge funds are the most prudent approach to access the opportunities inherent in emerging markets.

Emerging market equity investing has typically been characterized by dramatic price movements through market cycles in both directions.  In addition, the inefficient, diverse and often rapidly developing nature of emerging capital markets creates challenges which can create unexpected risks for non-specialist investors.

In a recent report, GFIA analyzed how hedge funds specializing in emerging market investing can both exploit these market inefficiencies, and protect themselves from extremes of price movements, thereby generating stronger risk adjusted returns over time.  The paper further evaluates the performance of emerging markets hedge funds against traditional investment methods, including long only funds, using various metrics. The key conclusions of the study are:

  • On a risk adjusted basis (whether risk is measured as volatility or drawdown), emerging market hedge fund aggregates have performed better than both the broader emerging market equity indices, and developed market indices.
  • Emerging market hedge funds have relatively low correlation with developed market asset classes for most time periods in the last 8 years.
  • Adding emerging market hedge funds to traditional portfolios creates powerful diversification benefits which can expand portfolios’ efficient frontiers.
  • During periods of falling markets, hedge funds exhibit lower drawdowns than their underlying markets. This in turn enables them to recover more swiftly when markets return to an upward trend, providing more powerful compounding than unhedged investing.
  • Finally, a terminal wealth study of hedge fund returns versus mutual fund returns demonstrates that, over holding periods of both 5 years and 3 years, terminal wealth from portfolios of hedge funds is superior to that from mutual funds, regardless of starting year of investment.

Emerging market investing

Investing into emerging markets over the long term has been rewarding, though volatile, as the tables below indicate:

While passive investments in emerging markets have performed well over the long-term, Investors can best take advantage of the growth opportunities of the emerging markets whilst insulating themselves from market volatility and inefficiencies, by investing through skill-based investment strategies such as hedge funds and non-benchmarked absolute return funds.  The following table and chart demonstrates the effect of investing into hedged strategies in emerging markets.

The advantage of skill-based investing comes both from the compounding effect provided by absolute return strategies in providing downside mitigation, and also from the diversification effect of using multiple and disparate investment strategies to access the inefficiencies in emerging markets.  Mitigating the deep drawdowns of emerging market equity indices (which hedge funds do) allows a long-term investor to compound their returns much more effectively, and the diversification of multiple investment strategies creates a lower volatility return profile at the portfolio level.

In the recent research paper (ed: available here with free registration), GFIA used an approach pioneered by Pierre Hillion of INSEAD, to demonstrate the persistent effects of a hedged approach to emerging market investing.  This approach ignores short term volatility and market timing issues, and instead focuses on the real-world outcome desired by almost all investors – achieving acceptable returns over a certain time period.

Our analysis demonstrates clearly that portfolios with hedge funds have better returns in all scenarios except in a strong bull market.  However, and given that no investor has prior knowledge of market conditions over the medium to long term, the conclusion is consistent: using hedge funds to implement emerging market conviction is much more likely to generate attractive returns over the investment horizon than a passive investment.

Jean Viry-Babel
senior partner
VBK partners

Filed under: emerging market, , ,

Don't Blame Hedge Funds!

A really good article from the New York Time… I thought you might find it interesting:

By MELVYN KRAUSS
Published: June 24, 2009

When President Obama unveiled his financial regulation plan last week, a collective sigh of relief was heard throughout the U.S. financial community. The “regulation overkill” many feared on Wall Street had not materialized.

So bravo to Mr. Obama, who has demonstrated the good sense not to kill the goose that laid all those golden eggs.

Will Europe’s politicians be smart enough to follow his lead? The jury is out. But there is reason to believe “regulation overkill” may be on the menu for Europe.

Consider the case of hedge funds. They have become a favorite target for European politicians because they are largely not regulated, use considerable leverage and created a new class of wealthy youngish people who are widely envied and resented.

But the big lie about hedge funds is that they are one of the causes of the financial crisis. Speaking of hedge funds last week at a conference in Milan, the European Central Bank executive board member Lorenzo Bini-Smaghi asserted that “whoever was not regulated before does not want to be regulated and talks of over-regulation, but the fact they weren’t regulated was one of the causes of the crisis.”

This is nonsense. The Federal Reserve, not hedge funds, created the housing bubble that blew up in our faces. Banks, not hedge funds, made dubious loans to people who couldn’t afford the houses they were buying. Bankers, not hedge funds, bundled these “toxic assets” and sold them to other financial institutions. A.I.G. is an insurance company, not a hedge fund.

There is not one serious economist in the United States who believes that hedge funds were one of the causes of the crisis — even though many believe there needs to be more regulation of hedge funds because of their size and alleged potential for systemic risk.

The Obama plan takes a moderate approach to the issue. It compels hedge funds to register with the Securities and Exchange Commission and provide some administrative data. This imposes a compliance burden on the funds but nothing they can’t live with.

While hedge funds are little more than a side show in the United States, in Europe they have become a hot button issue. The leader of a campaign for E.U. regulations of hedge funds, the socialist member of the European Parliament Poul Nyrup Rasmussen, pounds the table in a media interview and taunts hedge fund managers with the statement, “What are you afraid of?”

But it’s not what the hedge funds should be afraid of that’s the issue; it’s what the European Union should fear if it goes through with tough measures against alternative investments. Over-regulation will cause the better European-based hedge funds to flee the E.U. for less hostile regulatory environments, even though they will continue to trade on the European exchanges.

This means the European regulatory authorities will have even less knowledge than they do now of the trading activities going on inside their borders. What would they gain by this?

Of course, the big losers will be European investors who would be restricted to investing their capital with E.U.-based firms — European pension funds and pension fund beneficiaries. They will suffer unwanted declines in their rates of return.

Ironically, the hedge funds themselves would merely be inconvenienced by over-regulation. When European investors are forced to pull out, the better hedge funds easily will replace their money with that of the sovereign wealth funds from places like China and Singapore. Instead of a hedge fund operator living in London managing money for a German pension fund, the trader will be living in Zurich and managing money for the Singapore government.

In the investment world, the ultimate scarce resource is trading talent, which is internationally mobile. President Obama understood this, which is why he chose a moderate course in regulating hedge funds.

Protectionism is another factor lying behind some of the attacks on hedge funds. Europe’s hedge fund industry is located primarily in London. France’s president, Nicolas Sarkozy, wants to change this by using strict E.U. regulations to force Britain to “harmonize” itself out of business. He wants part of the hedge fund action for France.

For protectionists, the war against hedge funds is a thinly disguised war against London’s influence. Why should other Europeans — particularly, the British — cooperate with him?

Melvyn Krauss is a senior fellow at the Hoover Institution, a think tank at Stanford University.

Jean Viry-Babel
senior partner
VBK partners

Filed under: hedge fund, , , , ,