Tuesday, 28 February 2017
Last updated 12 hours ago
Apr 25 2013 | 10:26am ET
Fund of hedge funds Pacific Alternative Asset Management Co. is looking across its namesake ocean for new investors and new investments.
Irvine, Calif.-based PAAMCo. hopes to diversify its investor base by luring pension funds and sovereign wealth funds in Asia, David Walter, a Singapore-based director for the firm, told Bloomberg News. Currently, U.S. clients account for 85% of PAAMCo.'s assets.
"Asian investors are becoming more sophisticated and open to alternative investments," Walter said. "There is now great potential to expand our relationships in the region."
"As investors get more sophisticated, they are increasingly going directly into large global hedge funds," he added. "That's where we see interest—is working with them in building customized portfolios of emerging managers to complement their existing holdings."
PAAMCo. is also looking at Asian hedge fund managers, especially relative-value and high-yield managers. The firm currently invests in only about 10 managers focused on the region.
"I feel strongly there is alpha in the region and that as markets and economies develop, these opportunities will persist and grow, but the key is identifying people who can capture them," Walter said. "As we invest in emerging managers, we have to spend a lot of our time getting these guys up to speed."