Monday, 8 February 2016
Last updated 22 min ago
May 14 2010 | 9:19am ET
A pair of Lehman Brothers veterans has launched an Asian structured credit hedge fund.
Leon Hindle and Fredric Teng’s Oracle Investment Fund debuted this week. Aimed at U.S. investors, the fund seeks to buy structured products from Asian banks that want to unload them as the market recovers. The fund will buy collateralized debt and loan obligations as well as credit-linked notes, backed by corporate credit. Oracle plans to shy away from mortgage-backed securities.
Hong Kong-based Oracle Capital aims to raise US$50 million for the fund and a planned second fund—targeted at non-U.S. investors—that will launch in June, Bloomberg News reports. Both funds will have a five-year lifespan and are targeting 20% annual returns.
To get those hoped-for returns, however, investors will have to accept a one-year lockup. The Oracle fund will feature monthly liquidity thereafter.
Among the fund’s early investors are some Asian institutions and other former Lehman executives.
Hindle served as head of structured credit and CDOs in the Asia-Pacific region at Lehman, while Teng was head of its Asia-Pacific fixed-income syndicate.