FCA Eyes Asia, Ex-Prop. Traders For Seeding Opportunities

Mar 23 2011 | 12:31pm ET

Hedge fund seeder FRM Capital Advisors plans to back three or four new hedge funds this year, including its third Asia-focused seedling.

The London-based firm, which currently invests in six hedge funds, is eyeing both new firms set up by former proprietary traders as well as smaller funds.

"Expect us to do three to four investments this year, and there's a probability one of them will be in Asia," Patric de Gentile-Williams, chief operating officer, told Reuters. "We are looking to seed high-quality managers and we would be very happy if those happened to be based in Asia and we would be very happy if they came out of prop. desk" in the wake of new U.S. banking regulations.

FCA currently invests in just one Asia-based hedge fund, Hong Kong's Isometric Capital. Its other Asia-focused portfolio hedge fund, Sensato Capital Management, is based in San Francisco. "There could be quite a few high-powered launches in Asia this year, probably more than last year," de Gentile-Williams said.

He also said FCA wouldn't hesitate to seed a smaller hedge fund.

"We can be 90% of the fund. We are not bothered about that," he explained to Reuters. "What we are bothered about is that the markets they invest in and the strategy that they run could absorb at least $500 million to $1 billion."


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