Abax Global Capital is responding to growing investor demands for changes in hedge fund fee structures. The Hong Kong firm, which is owned in part by Morgan Stanley, is opening its Asia macro fund to outside investors, promising to refund part of its performance fee if the fund loses money in the subsequent year.
Abax launched its Dymon Asia Macro Fund in August with US$113 million, most of it from hedge fund Tudor Investment Corp. And now, ready for public consumption, its offering a sweetener: A clawback clause, under which it will repay half of the 20% performance fee it earned the previous year if it loses money the following year.
“We want to let investors know that we’re in this together,” chief investment officer Danny Yong told Bloomberg News.
The Dymon Asia Macro fund will open to outside investors for the first time on July 1. The fund trades interest-rate, currency and equity derivatives, and has outperformed the Eurekahedge Asia Macro Hedge Fund Index, according to Yong, although he declined to provide Bloomberg with its performance figures.