Hawaii-based Bellamy Fund Management is looking east to find alpha. The Honolulu firm has launched the Samurai Fund, a long-biased Japanese equity hedge fund, with Tokyo-based Rise Asset Management serving as the fund’s investment adviser.
The fund will invest in publicly-listed, mid- to large-cap Japanese companies, as well as shorting names “that are misrepresented by the market and are trading at a discount/premium to their inherent value,” according to fund documents.
Typically, the fund’s portfolio will consist of 30 to 50 long positions and up to five shorts, and will use limited leverage. The gross position will range from -20% to 150% with an anticipated net exposure of 80% to 90%. Its benchmark is the TOPIX, which tracks the Tokyo Stock Exchange.
The fund is currently long basic chemicals, electronic materials, media and industrial metals sectors, with one short position in the consumer electronics sector.
Samurai, which debuted on Sept. 3, is up 14.7% in its first two months. Firm founder Jason Bellamy is in Hong Kong this week for the Merrill Lynch capital introduction conference, trying to raise more money for the fund, which currently manages less than $1 million. “The performance has been stellar, but we need to get more funds to be treated seriously,” he said.
The Samurai Fund charges a 1.5% management fee and a 20% incentive fee per annum.
Prior to founding the eponymous firm last year, Bellamy served as chief compliance officer for Myojo Asset Management handling compliance, trading and marketing for the firm’s Japanese long/short funds.