Singapore's Whitefield Waives Performance Fee

Nov 24 2010 | 5:02am ET

With two straight years of double-digit performance, Singapore-based hedge fund Whitefield Capital Management shouldn't have too much troubled attracting new investors. But the firm is sweetening the pot even more, foreswearing performance fees until it doubles its assets under management.

Whitefield, which has about US$100 million in assets, stopped charging its 15% performance fee last year in the face of investor redemptions. The firm hopes to build up a large enough asset base to enable it to attract more and larger investors.

"Right now, the head wind for us is the size of the assets under management," managing director Benjamin Ng told Bloomberg News. "We are trying all means and ways to grow it; we are even prepared to cut a deal with investors who can help us bridge this tougher part of the journey."

The firm's Asian Opportunities Fund has returned 33% this year after rising nearly 80% last year (it lost half of its value in 2008). Ng said the fund would begin charging performance fees once again when it reaches between US$50 million and US$100 million in assets.

The fund currently manages US$30 million, excluding managed accounts. Three years ago, Whitefield managed some US$300 million.

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