Ex-HSBC Exec. Absalom Founds Asian Fund Of Funds

Mar 11 2009 | 2:51am ET

An HSBC veteran has set up a new Asian fund of hedge funds, with plans to steer clear of long-only strategies hard hit by the downturn in regional equities.

Paul Absalom, who headed hedge fund and central bank sales at HSBC, is CEO and chief investment officer of Stockade Asian Trading Strategies, Asian Investor reports. The fund will invest in a stable of approximately 10 underlying funds utilizing such strategies as macro, relative-value arbitrage, currency and quantitative trading. Stockade will not invest in equity long/short, distressed, special situations, convertible arbitrage credit or directional volatility funds.

Stockade is targeting a 10% annual return with 5% volatility; back-testing showed a 14% return last year, when the average Asian hedge fund plummeted 20%.

In addition to the main fund of funds, Stockade will offer investors a beta overlay.

Singapore-based Stockade will charge a 1.5% management fee and 10% performance fee. It has a capacity of $500 million and the firm is readying a marketing effort in the U.S. and Europe shortly.

Joining Absalom, who most recently helped set up structured finance and restructuring ship Teak Capital, at Stockade are Tiong Yee Koh as portfolio manager and Jacob Shin as chief operating officer and chief risk officer. Koh joins from UOB, and Shin from Richcourt Fund Advisors.

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