Man Seeder Backs Ex-Fortress Hong Kong Chief’s New Fund

Aug 19 2009 | 2:41am ET

The Man Group is backing a new hedge fund founded by Fortress Investment Group’s former top man in Hong Kong.

Man’s seeding fund, RMF Global Emerging Managers, is investing US$50 million in the Minerva Macro Fund, led by Stanley Ku, who left Fortress in December. The global macro offering will focus on Asian investments.

While at Fortress, Ku set up its Hong Kong office and managed some US$750 million for its Drawbridge Global Macro Fund.

The deal is the second for RMF Global this year. Last month, the fund invested in 5:15 Capital Management, a Connecticut-based hedge fund founded by three Brevan Howard Capital Management veterans. That deal was also for US$50 million.

“Stanley Ku’s work at Fortress and Goldman Sachs has made him a very well respected money manager in Asia,” said Hans Hurschler, head of Man Investments’ hedge fund ventures. “But we are also enthusiastic about investing in this fund early in its development because Minerva invests in the kind of highly liquid assets that are especially appealing to investors following last year’s problems with gating and side pockets.”

Meanwhile, Hurschler is warning his fellow seeders not to take too much advantage of their current paucity of available seed funding for new hedge funds.

“You don’t want loan shark deals,” he told Retuers. “If you take too much, he will not be able to break even and he won’t be able to grow his business. It doesn’t make sense when times are difficult to impose terms that are beneficial to you and compromise the manager’s possibility to survive.”

Hurschler said his firm’s seeding deals only last for “a couple of years.”

“A manager doesn’t want people who in 15 or 20 years are taking money from [him],” he said. "Today’s deals are limited in time. They’re not like private equity deals; they’re like a loan.”


In Depth

Will Liquid Alts’ Performance Sustain Future Asset Flows?

Aug 25 2014 | 10:34am ET

Liquid alternative investment funds saw the highest percentage of capital inflows...

Lifestyle

Hedgies, Economists and Musicians Mingle At Milkin Mixers In Hamptons

Aug 25 2014 | 6:00am ET

Leave it to Michael Milken to bring some gravitas and sweat to the Hamptons -- along...

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

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.