RAB Asia Spin-Off To Launch Market-Neutral Stock Fund

Feb 22 2011 | 10:13am ET

Northwest Investment Management, the former Asian hedge fund arm of RAB Capital, plans to raise US$250 million for a new market-neutral hedge fund.

The Hong Kong-based firm, which spun off from RAB in 2009, will launch its Equity Alpha Fund in April, Bloomberg News reports. The firm's principals will seed the new vehicle, which they hope will raise the quarter-billion dollars within a year.

The fund features new hire Nial Gooding, who joined the firm last year from UBS to boost its equity capabilities.

Mark Smith, the firm's head of business development, said the new fund aims to tap a growing demand for uncorrelated stock funds in Asia. The new vehicle will not go short, will not use more than 50% leverage, and aims to have no more than 15 positions apiece in its major markets of China, Hong Kong, India, Japan and Taiwan.

"Per market, people have 30, 40, 50 positions," CEO George Philips told Bloomberg. "Once you start going above that number, you do become market."

Philips said the Equity Alpha fund will target 20% annual returns.

Northwest currently manages US$750 million across three hedge funds. The firm's assets grew by some 37% last year, thanks primarily to new allocations from institutional investors.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

The Life Settlement: Yield For The Investor And Cash For The Consumer

Mar 31 2015 | 6:48am ET

Investors are languishing in a yield-starved, low-interest rate environment, looking...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note