Wednesday, 23 July 2014
Last updated 15 hours ago
Nov 1 2010 | 12:35pm ET
New York-based AIFAM Inc. has launched a fund of hedge funds targeting Japanese pension funds.
The long/short equity strategy isn't new to the US$600 million firm—it has run managed accounts using it since 2006, earning between 2% and 3% annually. Now the firm, which is based in New York but boasts Tokio Marine Holdings as a major minority investor, is hoping to ramp up both the strategy and its performance.
The AIFAM Hedged Equity Fund is targeting returns of about 6% per year, founder Takuma Aoyama told Bloomberg News. The fund, which debuted with US$17 million in proprietary capital yesterday, hopes to raise US$50 million by the end of the first quarter and US$150 million in its first year.
"Japanese pension funds are faced with serious problems," Aoyama said. "We're not making any promises that we're going to offer a fund that will not be affected by the market moves at all, but instead, we're going to offer a fund that will allow investors to shrink their losses with the same capital they may invest in other asset classes."
The new fund has a capacity of about US$1 billion and invests in between 12 and 15 underlying global long/short managers, including some sector-specific managers. It will steer clear of emerging managers and those with long lockups, with a goal of being able to liquidate the entire portfolio in a month.
The fund will charge no performance fees, to avoid incentivizing its management team to take greater risks.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…