Japanese Trader Readies Credit Hedge Fund

Mar 8 2012 | 12:42pm ET

Despite the turmoil surrounding the Japanese money management business, a former Mitsubishi UFJ Morgan Stanley Securities trader is planning to launch a hedge fund.

Yoshihito Asakawa's Sherpa Asset Management, founded last month, will offer its maiden fund in May, he told the Japan Times. The new fund will debut with about ¥500 million, much of it from readers of his blog.

The Sherpa fund will invest in credit derivatives and currencies, with a focus on Japan. Most of the fund's assets will be in the former, with just one-fifth invested on the foreign exchange market. In particular, Asakawa said he is looking at credit-linked notes and first-to-default notes.

Sherpa will target annual returns of between 15% and 20%, he said.

Asakawa said he hopes to raise ¥2 billion within two years and that he is currently seeking an investment management license. The fund will initially be sold only in Japan.

Asakawa acknowledged that now many not seem like the ideal time to launch a hedge fund, with many new and smaller funds in Asia finding fundraising difficult and Japan still reeling from the suspension of AIJ Investment Advisors.

"It's become a lot more difficult as a trader and as an institution to take risks," he told the Times. "The AIJ scandal has a negative impact for the fund industry as a whole, but I'm trying to take it positively that pensions will start putting more money with those that are trustworthy."


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this race. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.