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

Feb 5 2010 | 1:04pm 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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.