Hong Kong-based brothers Otto and Dio Wong have left their secure jobs at bulge bracket banks and are striking out on their own with a new hedge fund firm. The pair recently founded Three Kingdoms Capital and, with backing from private equity fund MD Sass-Macquarie Financial Strategies, they are gearing up to launch a concentrated long/short strategy early next year.
“This is a very talented group of portfolio managers and they’ve been managing family money for years with very strong records,” said a source with knowledge of the deal. “The strategy is a concentrated long/short equity portfolio focused in Asia, largely in China, Taiwan and Hong Kong. Their portfolio has somewhere in the range of 10 securities so it is very concentrated with high convictions.”
Otto previously worked for Citigroup in Hong Kong as head of equity research in Asia, and Dio worked at Merrill Lynch as a buy-side strategist. The pair is relocating to Singapore to launch the Three Kingdoms fund, which charges fees of 2% for management and 20% for performance with a $1 million minimum investment requirement.
This is the seventh seeding deal for the $273 million M.D. Sass-Macquarie Financial Strategies private equity fund. The fund also recently seeded an Aussie natural resources private equity fund dubbed the Taurus Fund, designed to invest in mining concerns in Africa, Asia and Latin America.