Davide Erro is preparing to launch a successor hedge fund to his Gandhara Capital, which he closed earlier this year.
Erro shuttered Gandhara, which once managed as much as $3.8 billion, in March after investors sought to redeem more than one-third of its remaining $2.3 billion. The fund, which invested primarily in Asian and European stocks, lost about 20% last year.
Erro plans to launch the new fund, which will also invest in stocks, early next year, The Wall Street Journal reports. Like several other hedge fund managers who have launched new vehicles this year, Erro will waive performance fees for former investors who join his new venture until he has recouped their losses from last year. The Journal reports he is also mulling a clawback provision.
The new fund, like the old one, will be based in Hong Kong.