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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note