Hong Kong-based Wykeham Capital is opening its long-biased small- and micro-cap hedge fund strategy to outside investors.
The Asia Value Fund will open at the end of this month. The fund currently manages US$2 million for friends and family of Wykeham CEO Howel Thomas, and has returned 45% over the past 12 months, according to Asian Investor.
Wykeham runs a concentrated deep-value strategy, with between 15 and 20 names currently in its portfolio. The fund is especially heavy on electronics and consumer manufacturing.
"Right now, I'd tend to be staying away from banks, financial institutions, real estate, and any heavily leveraged business," Thomas told Asian Investor. "Corporate governance is an important factor. I avoid any company with questionable corporate governance."
Thomas spent nearly a decade at CLSA and five years in real-estate development before setting up Wykeham last year. At CLSA, he was head of options and futures before leaving in 2005.
Wykeham charges 1% for management and 25% for performance with a 6% returns hurdle and high watermark. There is no lock-up and the fund features quarterly liquidity with three months' notice. Swiss Financial is the fund's administrator and Deutsche Bank its cash custodian.