Tuesday, 23 September 2014
Last updated 6 hours ago
Nov 9 2011 | 11:27am ET
Day traders don't boast a useful track record when they graduate to become hedge fund managers. But a pair of former Japanese day traders are quickly building one at their new hedge fund.
Kyosuke Shirasaki and Masato Tanaka, 28-year-old friends from their university days, founded Harpstar Partners and launched their maiden hedge fund at the end of July. Since then, the fund, which debuted with ¥2 billion (US$26 million), is up 20%, Bloomberg News reports.
That return is even more impressive considered against the backdrop of overall hedge fund performance in the third quarter, especially in hard-hit Asia.
Harpstar invests exclusively in Nikkei 225 options, using futures to hedge its exposure. That strategy has paid off thanks to market volatility, up almost 50% in Japan this year. Shirasaki and Tanaka are targeting 50% annual returns.
Harpstar has already boosted its assets to ¥3.2 billion, both through performance and through fundraising. Shirasaki and Tanaka now aim to raise ¥5 billion over the next year.
"Our challenge is that we have no track record at major institutions, so we have to prove our worth to investors with our performance," Shirasaki said. "On the other hand, our experience as day traders means we trade quite frequently to capture the best investment opportunities."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitich, CIO of Petty Endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.