Goldman Convertibles Vet Launches Multi-Strategy Hedge Fund

Jul 7 2010 | 12:09pm ET

The former head of convertible bond trading at Goldman Sachs has launched a Japan-focused hedge fund with plans to increase the size of the vehicle by more than US$300 million.

Round Rock Capital Advisors’ R-SQUARED Master Fund debuted on April 1 with ¥1.36 billion (US$15.5 million). But Tan Maruyama, the Goldman vet behind the Tokyo-based firm, has also seen that grow to ¥1.6 (US$18.2 million), and hopes to have ¥10 billion (US$114 million) in assets under management within a year, and a whopping ¥30 billion (US$342.1 million) within 18 months. It has a capacity of ¥50 billion (US$570.2 million).

“There isn't that much competition in Japan, even with the market size we have, which gives us an edge with the sort of background we have,“ Maruyama told Bloomberg News of his ambitious plans. The young fund—which returned 0.7% in its first three months of trading, using a strategy that enjoyed a 5.2% return on paper during the first three months of the year—has already attracted several new high-net worth investors since its launch.

Joining Maruyama at the new venture are a pair of former Capital Investment Management managers, Takatoshi Itoshima and Satoshi Kamata, as well as Shuhei Komatsu, who joins from Merrill Lynch.

“Investors also told us the Japanese hedge-fund space has been dominated with long/short funds and they were becoming interested in other strategies, which prompted us to enter,” Maruyama explained. Round Rock offers them three main strategies in its multi-strategy vehicle, long/short equity, credit and convertible arbitrage.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.