Former Lehman, R3 Trader Sets Up Credit Hedge Fund

Jun 26 2009 | 3:43am ET

Another day, another new credit hedge fund: Lehman Brothers veteran Assan Din is setting up a new vehicle focused on corporate bonds and derivatives in Asia.

Singapore-based SaKa Capital plans to launch its maiden hedge fund in September with between US$25 million and US$50 million, Din said. But the SaKaCapital Liquid Credit Fund has a capacity of more than $500 million, and the firm plans to market it to institutional investors after it develops a track record.

Din told Bloomberg News that his new fund is targeting 15% annual returns with “moderate leverage.” In addition to its bread-and-butter, corporate bonds and derivatives, Saka Capital will also invest in convertible debt, credit indices, liquid options and some stocks. He said that Asia is the most likely region to enjoy economic growth over the next few years, offering funds like his opportunities unlikely to be taken advantage of by banks and existing hedge funds.

“The days of large principal businesses at banks competing with hedge funds is over for the foreseeable future,” he said. “Banks and existing funds are suffering from illiquid legacy positions on their balance sheets and hence are handicapped to take advantage of the credit opportunity today.”

Din ran Lehman’s credit trading business in Europe and Asia until his departure in 2006. He was part of the group that set up R3 Capital Management, the $1.5 billion credit hedge fund spun off from Lehman last summer. Din left R3 before its acquisition by BlackRock in April.


In Depth

Don’t Overlook These 6 Hybrid Cloud Concerns

Sep 14 2017 | 6:27pm ET

Cloud-based technology solutions have made tremendous inroads into the alternative...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Cash: An Asset In Adolescence

Aug 31 2017 | 3:34pm ET

If the investment industry has a rebellious teenager in the house today, that teenager...

 

From the current issue of