Hedge fund Coupland Cardiff Asset Management is set to launch an Asian consumer-focused hedge fund in partnership with a pair of veterans of the region.
Former Arisaig Partners research chief Rory Dickson and Damian Kestel, late of CLSA Asia-Pacific Markets, will launch the CC Asian Evolution Fund on Dec. 1, the former told Bloomberg News. The new fund will invest in as many as 35 small- and mid-cap stocks of consumer companies across the region, including such frontier markets as Bangladesh, Sri Lanka and Vietnam.
Dickson and Kestel are targeting returns of between 12% and 15% annually. The fund, which will charge 1.5% for management and 15% for performance, has a US$300 million capacity.
The two managers said they decided to join Coupland Cardiff, which has US$600 million in assets under management, after spending “months speaking to a number of hedge funds who might be potential partners.” They decided on the London-based firm based on its back-office, compliance and marketing experience.
Dickson told Bloomberg that Coupland Cardiff would focus its fundraising efforts on institutional investors.
“You’ve got tailwinds of urbanization, fabulous demographics, rising disposable incomes, the growth of the middle class, consumer credit,” Dickson said. “Asia is just at the start of a long, long journey.”