Japan’s J-Flag Readies Small-Cap Hedge Fund

Feb 5 2010 | 2:04pm ET

Buoyed by its success in the space, a young Japanese hedge fund firm is planning a new fund focusing on the country’s small-cap companies.

J-Flag Investment Co., which was founded and launched its first hedge fund in June, plans to employ the deploy the strategy behind its successful debut Simplex J-Flag Absolute Return Fund on Japanese companies with market capitalizations of less than ¥30 billion, Bloomberg News reports. Simplex J-Flag’s investments in small-cap funds helped drive its benchmark-beating performance, returning 8.5% over its first seven months, compared to the 4.5% jump in the Jasdaq Stock Index, which tracks small-cap stocks.

J-Flag founder Hisashi Osezawa, a former fund manager at JPMorgan Chase, said he hopes to launch the new fund in April or May with as much as ¥1 billion (US$11 million). Osezawa acknowledges that the fundraising environment is not exactly favorable, but told Bloomberg that he is in talks with several potential anchor investors of the new offshore vehicle.

“Capital-raising remains tough for start-ups like us, but in terms of performance, it was the best time to enter the market,” he said. “We are slowly starting to see some traction from overseas funds of funds now.”


In Depth

Q&A: Star Mountain's Brett Hickey On Investing In 'The Growth Engine Of America'

Sep 22 2017 | 5:06pm ET

Lower middle-market companies form the economic fabric of the nation, but they can...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

 

From the current issue of

Business Insider has been reporting on the unusual trading activity of a mystery trader who placed a profitable short equity bet to the tune of $21 million on the Aug. 10 move in the CBOE Volatility Index (VIX).