Simplex Asset Management is set to launch a new Asia-focused multi-strategy hedge fund helmed by a former Royal Bank of Scotland executive.
The Japanese firm's new fund will be managed from Hong Kong by Kin Cheung, formerly head of Asia trading at RBS, The Wall Street Journal reports. Simplex has not yet begun to market the new vehicle, leading Cheung to decline to comment on how much it hopes to raise.
The fund will have a long/short equity portfolio and a volatility strategy focused on Asian derivatives. "In derivatives strategies, it is usually easier to make money when the market is moving a lot, whereas for long/short it is the opposite," Cheung, who left RBS in September, told the Journal. "Having these two propositions to complement each other is attractive."
At least initially, Cheung seems to favor the former approach, noting that increasing political tensions, economic recoveries in the U.S. and Japan, and China's reform plan could lead to volatility in the next few years.