Japanese Firm Plans Offshore Fund With Country's First License

Nov 28 2012 | 1:05am ET

Tokyo-based hedge fund Edgebell Capital Co. plans to relaunch its global macro strategy in the wake of new Japanese regulations.

Edgebell is the first firm to win a discretionary investment management license from Japanese regulators. Approval in hand—it was received on Nov. 20—the firm, set up by former bankers from Goldman Sachs and Mizuho Corporate Bank—will launch a Cayman Islands-domiciled version of its global macro fund in February.

Edgebell liquidated its Global Macro Strategy in March, after deciding to seek the new license. The fund returned 2% in its 11 months of trading, Bloomberg News reports.

Where the old fund debuted with between ¥1 billion and ¥2 billion, the new fund is expected to garner ¥5 billion in its first year.

Japan in April relaxed its tough hedge fund rules. The new regulations reduce minimum capital requirements and minimum staffing requirements.

"The hurdle to entry has been lowered and we really hope that this will start creating a trend where hedge funds will set up shops in Japan," Edgebell co-founder Kazuho Suzuki told Bloomberg. "I'm hoping for a revival and regain in confidence for the current Japanese fund industry."


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