Burst of New Asia-Themed Hedge Funds To Launch

Tom Burroughes

10 April 2008

The world’s hedge fund industry is looking eastwards for returns as it takes a hit from the global credit crunch, planning a slew of new fund-raising efforts to take advantages of opportunities in Asia, according to Reuters. Tribridge Investment Partners and HSBC Halbis Capital Management unveiled plans for new hedge funds, while ADM Capital said it would raise almost $1 billion for existing funds, and KGR Capital indicated that it was mulling a launch and fundraising drive. Hong Kong-based Tribridge will launch a Korea-focused fund on 1 June, Eugene Kim, chief investment officer, said. The firm is also preparing an Asian asset-backed securities fund for launch by the end of the year. The Korea fund, which is set to debut with no less than $10 million to $20 million in an offshore version, aims to take advantage of the capital markets deregulation in South Korea, set to take effect next year. The planned asset-backed fund is expected to launch with between $50 million and $100 million. Meanwhile, HSBC Halbis alternatives chief Bill Maldonado said it will launch an India mid-cap fund, which it would split from its India market neutral fund. The new India offering is set for launch in the third quarter with as much as $400 million. In the traditional, long-only fund management space, meanwhile, China's Yinhua Fund Management plans to launch a fund for subscription on 21 April to raise up to $2 billion for investments in global capital markets, Reuters said, citing an unnamed source. This would be the seventh such fund to be launched by a domestic fund house under the country's Qualified Domestic Institutional Investor scheme - aimed at giving domestic residents more investment opportunities and promoting a better balance in China's international payments. The firm had received regulatory approval to raise up to $2 billion for the product.