New Hedge Fund, Unscathed By Earthquake, Begins Fundraising Push

Apr 26 2011 | 12:15pm ET

A Japanese hedge fund launched late last year more than weathered last month's massive earthquake and tsunami as it seeks to attract millions of dollars in new investments.

Sherp Alternative Advisors' Developed Asia Gamma Strategy Fund returned 5% last month, Bloomberg News reports, even as Japanese stocks tumbled in the wake of the earthquake and ensuing nuclear crisis.

The fund credited its big gains last month to its investments in Nikkei 225 Index options.

"We are in an interesting time where we have to expect the unexpected as we saw with the disaster in Japan," managing director and co-founder Ken Fukui told Bloomberg. "The investments to buy downside protections before the earthquake contributed to the return in March."

The Gamma Strategy fund launched in September with "a few million dollars." Sherpa, which has held discussions with Japanese financial institutions about selling the fund, hopes to raise about ¥10 billion by the end of the year.

"The fund aims to win a place where investors will see it as a good protection for downside risks," Fukui said.

Fukui set up Sherp last year with Go Horiuchi, a former derivatives trader at Nomura Holdings. Fukui's resume boasts time as chief investment officer at GCI Asset Management and a fund manager at Sparx Group, Asia's largest hedge fund manager.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


Hedge Funds Swarm Into Palm Beach

Oct 27 2016 | 2:32pm ET

As the first flakes of snow fall on New York's northern suburbs, Dan Weil of South...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...