Thursday, 27 November 2014
Last updated 1 day ago
Mar 9 2011 | 12:39pm ET
An Och-Ziff Capital Management veteran and a former Instinet trader in Tokyo are preparing to launch a Japanese large-cap hedge fund, with backing from Wolver Hill Advisors.
Siena Capital's Carnico Japan Fund will debut next month, Bloomberg News reports. Chris Redl has been managing the long/short strategy since last year, earning 10% returns from April through August, he said.
Carnico, a portmanteau of the names of Redl's sons Carlo and Nico, will invest primarily in Japanese stocks enjoying heavy trading volume, generally averaging at least US$10 millions' worth every day over the past three months. The fund's portfolio will consist of between 50 and 70 names.
Redl will also rely on his own contacts with Japanese companies, of which he visits about 200 per year.
"I have to have the word from the horse's mouth in order to invest with conviction," he told Bloomberg. "Japan has its reputation of being a laggard in Asia, but we actually think it's a great market to invest in—in terms of liquidity, long and short, this is the best market in Asia."
The new fund will launch with between $20 million and $30 million in initial assets. Much of that money will come from anchor investor Wolver Hill, a New York-based firm with a long history of investing in Japanese hedge funds.
Singapore-based Siena is headed by Redl as managing partner and Dean Kimpton as chief trader. Redl was a portfolio manager at Och-Ziff until 1999, while Kimpton was a sales trader for Instinet in Japan.
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