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

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

When Less is More: The Case for Concentrated Equity Strategies

Jun 1 2015 | 7:59am ET

The conventional wisdom is that wide diversification is the “holy grail,” as...

 

Sponsored Content

Editor's Note