New Hedge Fund Solaris To Launch Arb. Fund

Oct 25 2010 | 2:12am ET

A trio of Asian trading veterans are set to launch an arbitrage hedge fund next month.

Solaris Asset Management's maiden fund will debut on Nov. 8 with S$30 million (US$23.1 million) provided by Chinese investors, Bloomberg News reports. The Singapore-based firm will focus its fundraising on its home region—and its trading, as well, at least initially.

The Solaris Capital SPC Equity Arbitrage Fund will trade equities and derivatives in Japan, Hong Kong, Singapore, Taiwan, South Korea and Australia. Within the next six to 18 months, the firm will add the U.S., U.K., Europe and India to its lineup, followed by Brazil, Canada, Mexico and South Africa, founder Thomas Tey said.

The fund will not take "directional risks," Tey, the former head of equity derivatives at Oversea-Chinese Banking Corp. and most recently an executive at the Singapore Exchange, told Bloomberg.

"Arbitrage opportunities exist in all markets under all market conditions."

Tey and his partners, Wang Wei Dong, formerly of Bosera Asset Management, and Jeffrey Wong, former of the Singapore Exchange and Australia's ASX, said they would focus on raising money from Asian investors because doing so in the U.S. and Europe is "very, very tough." Solaris aims to raise S$100 million by the end of next year.

"This is not a very conducive environment to be raising money, but we expect to get to our target," Tey told Bloomberg.

Solaris is targeting annual returns of 20% to 25%. It will charge 1.5% for management and 20% for performance. Citigroup is the fund's prime broker, while Taiyo Asset Management will handle execution and post-trade services.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.