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.


Lifestyle

Survey: Wall Street Banks Still Top Silicon Valley, Hedge Funds for Freshly-Minted MBAs

Jun 21 2016 | 9:01pm ET

Contrary to concerns that Wall Street isn't as appealing to new graduates as it...

Guest Contributor

The Future of the Blockchain in Financial Services Communications

Jun 17 2016 | 1:05pm ET

Over the past year, a large portion of the financial services industry has awakened...