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

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

The Cult of Loss Aversion: A Call to Rethink Risk in Global Macro Investing

Sep 4 2014 | 5:45am ET

In the wake of a traumatic loss, whether it is financial or personal, it is just...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.