Morgan Stanley Veteran Readies Japanese Equity Hedge Fund

Mar 28 2013 | 11:40am ET

After three years of managing his own money to build a track record, a former Morgan Stanley money manager is ready to take on outside investors.

Tsukasa Shimoda's Galleyla Investment Co. will launch its maiden hedge fund on Monday. The new fund will employ a long/short equity strategy focused on Japan, eyeing annualized returns of between 15% and 25%, Bloomberg News reports. Shimoda will invest in between 60 and 150 names, using a combination of technical and fundamental analysis.

Shimoda has been managing his own money since leaving Morgan Stanley Assets & Investment Trust Management Co., where he was a fund manager, in 2009. Between February 2010 and January, he managed a return of 91% with the strategy he plans to deploy in the new UMJ Galleyla Fund, he said.

"There is a strong upward trend in Japan right now," Shimoda said. "The fact the Japanese stock market is under the spotlight is a positive for hedge funds."

The fund will debut with about ¥1 billion (US$11 million) in initial assets, some of it provided by a foreign fund of hedge funds, and will close to new investment at about ¥20 billion. Tokyo-based Galleyla will serve as its investment adviser, which United Managers Japan the investment manager.

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