Japanese hedge fund KTOs Capital Partners is launching a currency fund managed by a new hire from Hathersage Capital Management.
The Tokyo-based firm’s Currency Fund will debut on Dec. 1, seeded with US$5 million from a Japanese pension fund and US$6 million from the firm’s two funds of hedge funds, Bloomberg News reports. KTOs has hired William Lipschutz to run the new offering, which aims to raise US$300 million within a year by targeting Japanese pension funds.
“This currency fund will allow Japanese pensions to hedge their foreign exchange exposures given the low correlation with other asset classes such as bonds and equities,” KTOs founding partner Satoko Koshida told Bloomberg. “The currency market is a great place to diversify investments in this current climate where the global market is getting smaller and more connected.”
The fund will invest in Group of 10 currencies. Lipschutz will manage it from New York.
KTOs currently has US$90 million in assets under management spread across its two funds of hedge funds.