Sparx Says ¥5 Trillion Target A Pipe Dream

Jan 26 2009 | 2:06am ET

Asia-focused hedge funds have suffered disproportionately amidst the economic crisis even compared to battered hedge funds around the globe. The grim reality of the situation has forced the continent’s largest hedge fund manager to begin thinking smaller.

Sparx Group acknowledged that it will not achieve its goal of having ¥5 trillion (US$56.4 billion) in assets under management by March 2011. The Tokyo-based firm has been wracked by investor redemptions and poor performance in recent years, leaving it with just ¥753 billion (US$8.5 billion) at the end of last year, down from its peak of ¥2 trillion (US$22.5 billion) in August 2006.

“Realitstically, it’s going to be extremely tough” to get to ¥5 trillion, CEO Shuhei Abe admitted to Bloomberg News last week. “Redemptions have peaked, but it doesn’t change the fact we still face very difficult times.

The firm has been slashing costs and cutting jobs. It closed its London-based unit and has cut back on its U.S. operations, and Abe said it might offer additional voluntary retirement packages, on top of the 20 announced in October.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note