Hedge Fund Pivotal Calls It Quits Due To Fundraising Woes

Sep 12 2012 | 1:09pm ET

Hong Kong hedge fund Pivotal Investments is closing its doors, the latest Asian hedge fund to join the scrapheap this year.

Pivotal's demise was blamed on a common complaint, inability to raise money. The firm debuted in 2010 with US$50 million but was never able to exceed US$70 million in assets, despite returning 44.5% last year. The fund, a volatility, event-driven and fundamental analysis vehicle investing in Greater China, Japan and the U.S., fell 2% in its first year.

Pivotal is in the process of returning capital to investors, Investment & Pensions Asia reports.

The firm was founded by Brian Yeh and Michael Sun of Evolution Capital Management. Yeh has agreed to join Farallon Capital Management spin-off China Rock Capital and Sun plans to manage his own money. The future of Pivotal's other employees, including Macy Chu, chief operating officer, and Jonathan Leong, vice president, is unclear.

More than 140 Asia hedge funds closed last year. This year, in addition to Pivotal, the casualty list includes Boyer Allan Investment Management, Novaterra Capital, Orvent Asset Management, Penta Investment Advisors, Riley Paterson Investment Management, Sequence Asset Management and Tiger Asia Management. All told, about 100 Asian hedge funds are expected to close this year.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note