Highbridge Capital Management's former top man in Asia has beaten back a regulatory probe and will launch his firm's maiden hedge fund to outside investors on Thursday, with plans to raise up to US$2 billion.
Carl Huttenlocher's Myriad Asset Management received its license from the Hong Kong Securities and Futures Commission on Friday. The regulatory approval was held up by an SFC probe into an anonymous complaint accusing Huttenlocher's fund at Highbridge of improperly valuing assets and inflating fees. Myriad was originally expected to debut on Sept. 1.
Huttenlocher, who left Highbridge in March, leading the firm to shutter his US$1.4 billion Asia Opportunities Fund, denied any wrongdoing, calling the accusations "baseless" and "a made-up malicious attack."
Myriad will launch with more than US$300 million in initial assets, Huttenlocher said. The money is both his and that of a family office from outside Asia; some of the money is locked up for four years.
Myriad hopes to raise as much as US$2 billion for its Opportunities Master Fund—and it expects to do so quickly, with plans to close by the middle of next year.
The new fund will employ an Asia-Pacific-focused stategy, investing in stocks, convertible bonds, corporate bonds and derivatives. It currently employs 19, half of them investment staffers. "One benefit of actually having this delay is that the team has been working together for four months now as a team, discussing ideas," Huttenlocher told reporters.