Millennium Singapore Team, Now At MCP, Readies Two Hedge Funds

Apr 12 2012 | 12:27pm ET

MCP Asset Management is set to put its new team of traders from Millennium Management to work with a pair of hedge fund launches next month.

The Hong Kong-based firm lured Masakatsu Hayashi and three other members of Millennium's Singapore team last month. In May, the quartet will begin managing the Terra Grove Japan and Terra Grove Pan Asian funds, Bloomberg News reports; MCP hopes to raise a combined US$300 million for the funds within about a year.

The Pan Asian fund will invest in Australia, Hong Kong, Japan, South Korea and Taiwan, while the Japan fund hopes to profit from a recovery in Japanese stocks following a 17% loss last year. The new funds, both equity long/short statistical arbitrage strategies, will debut with about US$25 million and will close at the US$300 million target, until their capacity is increased by improvements in their trading models. Both will also feature high turnovers, with the Japan fund targeting 15% annualized returns and the Pan-Asia fund 20%.

"Many overseas investors are underweight Japan, and many bigger funds are already closed to new investors, so we're seeing some interest from those who want to have a Japan exposure," MCP CEO Tetsuo Ochi told Bloomberg.

MCP has engaged Deutsche Bank and Goldman Sachs as prime brokers for the two new funds.

Hayashi's team features Kohei Hayashi, Atsushi Kiyono and Akira Suzuki. Prior to joining Millennium, Masakatsu Hayashi was head of statistical arbitrage at Société Générale.

The Terra Grove funds aren't MCP's only new growth strategy. The firm has set up a strategic alliance with Woori Asset Management of South Korea to joining develop alternative investment products for Woori's clients.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

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.