Fund Of Funds KTOs To Invest US$330M In Asian Startups

Feb 16 2010 | 11:19am ET

A new Japanese fund of hedge funds has big ambitions as an Asian hedge fund seeder.

KTOs Capital Partners launched its Asian Rising Star Fund in December. The fund of funds currently manages ¥2.4 billion (US$26.7 million), but KTOs founder Satoko Koshida plans to raise and invest ¥30 billion (US$333.2 million) this year.

To that end, KTOs—which stands for “korondemo tadaja okinai zo,” Japanese for “I will learn from my mistakes”—has engaged hedge fund consultancy C2G Advisors. KTOs will raise the capital, while C2G chief Tetsuo Tanimura will research startups for the Rising Star fund, Bloomberg News reports.

“Many of the Asian hedge funds have changed for the better since the collapse of Lehman Brothers by offering a variety of strategies,” Koshida told Bloomberg. “Our goal is to find promising managers that will lead the industry in the next generation.”

Tanimura will seek out funds managed by veterans of major financial institutions, according to Koshida, a former fund of funds manager at Investor Select Advisors. KTOs hopes to make four investments this year; all told, Rising Star will invest in eight to 10 managers.

According to Bloomberg, the fund already has invested in four hedge funds: a Japanese long/short vehicle, an Asian multi-strategy fund, a macro fund and a greater China long/short fund. KTOs is targeting investments in a Japanese event-drive and long/short shop and an Asian commodity trading adviser.

The Rising Star fund returned 0.7% in its first month. KTOs’ other fund of funds, the ¥2.6 billion (US$28.9 million) Global Super Star Fund, has returned the same since it debuted in September.


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