Wednesday, 27 August 2014
Last updated 3 hours ago
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.”
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…
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 ...