Veterans of GLG Partners and Lionhart Advisors Group have joined forces to launch an Asian commodity-linked stock hedge fund.
Jason Wang, formerly a member of GLG’s European long/short group, and Simon Quirke, a former long/short manager at Lionhart, have founded Iridium Asset Management in Singapore. The new firm plans to launch its debut fund on May 3, Bloomberg News reports.
The Iridium Alpha Fund will invest in Asian commodity companies, targeting returns of at least 15% per year. But the firm aims to seriously rein in risk, keeping drawdowns below 10% in bad years, with a high level of liquidity and little leverage.
In addition to stocks, Iridium’s portfolio will include commodity derivatives, although equities will be the bulk of its investments. Initially, the fund will include between 30 and 50 securities.
“There are a greater number of inefficiencies with Asian commodity-linked equities than the European or U.S. counterparts,” Wang, who serves as CEO of the new firm, told Bloomberg. “They’re less widely-covered, understood by the buy-side and sell-side.”
Iridium’s money has come primarily from Asia’s ultra-rich. Wang said the fund should hit US$100 million within a year, and has a capacity of US$1 billion. The fund charges 2% for management and 20% for performance; UBS and Deutsche Bank are its prime brokers.
At GLG, Wang specialized in resources and industrials. He most recently worked at Singapore’s Oversea-Chinese Banking Corp. as a global equities proprietary trader. Quirke ran a long/short portfolio that was part of Lionhart’s global multistrategy hedge fund.