Japanese Hedge Fund Preps Tech.-Focused Offering

Feb 5 2009 | 12:28am ET

Hedge fund shop Myojo Asset Management Japan has high hopes that high technology can bring it back from the brink.

The firm, which saw 86% of its assets under management evaporate last year, is readying a new hedge fund to invest in global technology stocks, Bloomberg News reports, Myojo’s third fund. The long/short fund will debut on March 1 with “several hundreds of millions of yen,” according to fund manager Noriya Nishi, with plans to raise some ¥50 billion (US$560 million) over the next three to four years.

The Myojo Super Cycle Fund begin investing in 55 Japanese technology-related stocks and 25 companies outside of the country, with at least 80% of the fund’s assets in Japanese stocks. Nishi said he is targeting annual returns of 12% to 18%; the fund returned 18% in simulated trading between February 2008 and the end of the year, Myojo said in marketing documents.

“It’s difficult to base your bets on fundamentals given the deteriorating environment in the tech industry, so your focus will be on the short bets, while long bets will be traded based on short-term trades,” Nishi told Bloomberg.

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