Mizuho Vets. Ready Short-Term Japan Long/Short Fund

Jun 9 2010 | 12:53pm ET

With more than a two-year track record under their belt, a pair of veteran Japanese proprietary traders plan to launch a long/short hedge fund next month.

Akira Yaku and Kentaro Ishizaki will manage the new Alithion Japan Fund beginning on July 1. The fund’s strategy was seeded by Tokyo trading firm Marubeni Corp. in February 2008 with ¥2 billion; Yaku and Ishikazi have returned 18% since then.

“Irrational moves taken by investors in crisis situations create the best opportunity for a trading-oriented fund like ours,” Ishikazi told Bloomberg News. “We’ve built up our performance and with the backing of Marubeni, we thought this is a good time to start the fund.”

Ishikazi and Yaku set up Singapore-based Alithion Capital Management in November 2007, more than a year after leaving Mizuho Securities, were they were prop. traders. In addition to Yazu, who serves as CEO, and Ishikazi, who is chief investment officer, Alithion also boasts another former Mizuho prop. trader, Kai Hoshino, as portfolio manager.

The new fund will trade Japan’s 500 largest companies, with between 50 and 100 positions at any time, and an awful lot of turnover. Ishikazi told Bloomberg that about half of the fund’s investments will be traded on a daily basis. Such a fast-paced strategy will benefit from the Tokyo Stock Exchange’s plan to introduce a faster trading system this year.

Alithion is targeting annual returns of between 10% and 15%. The firm hopes to raise ¥10 billion within a year. Deutsche Bank serves as its prime broker.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note