DragonBack Seeks Takers For Hedge Fund Services

Nov 2 2010 | 10:53am ET

Hedge fund manager-cum-hedge fund platform DragonBack Capital is well on its way to launching its new business as a service provider. The Hong Kong-based firm has been in talks with more than 30 managers and hopes to have as many as five on board within six to nine months.

DragonBack shuttered its two hedge funds in August and let go its investment team. The firm now aims to offer support services, including accounting, risk management and marketing, to both start-up hedge funds and existing firms aiming to increase or rebuild their asset base.

"The idea is that we make all the bad go away for hedge fund managers so they can just focus on their investment decisions," chief operating officer Philip Tye told Bloomberg News. To do that, DragonBack has retained 10 staffers, including its head of operations, controller, information technology chief and investment services representatives.

"Independent risk control is key to what investors want," Tye said.

In exchange, hedge funds joining the platform will pay as much as 50% of their management fees and 25% of their performance fees to DragonBack.

DragonBack pulled the plug on its own hedge funds this summer after being hit by a wave a redemptions. The firm, which once managed US$600 million, had just US$45 million by the end of April.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.