Many hedge funds are clamoring to open offices in Asia. One Australian firm is bucking that trend, shuttering its Hong Kong office and moving all of its operations to its Sydney headquarters.
Ellerston Capital has transferred some of its analysts from Hong Kong to Sydney, and its Asian stock portfolio manager, Shantanu Nagpal, has left the firm for Brevan Howard Asset Management, Dow Jones reports. The US$1.39 billion hedge fund, controlled by Australian billionaire James Packer, will now manage all of its funds from Sydney.
The move appears motivated not by anything related to Ellerston itself, but by Packer’s private equity business’s decision to quit Hong Kong. The hedge fund had been leasing space from Arctic Capital—both firms are part of packer’s Consolidated Press Holdings—in Hong Kong, but Arctic chose to move all of its operations after buying ski resort and aquarium company Living & Leisure Australia Group two years ago.