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New York (HedgeCo.net) The Galleon scandal is raging full force, with Raj Rajaratnam’s global hedge funds under a microscope. Supervising the case is U.S. District Court Judge Jed S. Rakoff, who’s ruling on the Merrill Lynch/BofA case, earned him the nickname ‘Judge Dread’ on Wall Street, according to The Post.
Reuters reported the Sri Lankan stock market .CSE tumbling more than 4%, as investors withdrew money. Galleon Asia is keeping its $500 million AUM Asia hedge fund liquid, as they also await a possible mass exodus.
The CEO of the Asia hedge fund, David Lau, said the Asia fund is not under investigation by the SEC at the time. He said the fund has reduced leverage in the past few days but there has been no request for redemptions as yet, according to CNBC. The Asia fund, which runs a long/short equity and macro strategy, has risen over 15% since the start of the year.
In the USA’s largest hedge fund insider-trading scheme, Raj Rajaratnam was taken into custody in New York on Oct. 16, 2009.
Bloomberg – Raaj Shah, an ex-partner of Och-Ziff Capital Management Group LLC, co-founded a hedge fund last month trading under-researched and mispriced Asian securities affected by events such as mergers, tax changes and forced selling.
The almost $50 million Matchpoint Asia Fund Ltd. targets annual returns of 15 percent to 17 percent without betting on market direction, Sean Debow, chief operating officer and co- founder of its adviser Matchpoint Investment Management Asia Ltd., said in an interview. Hong Kong-based Matchpoint’s nine- person team has the capacity to manage $700 million, he added.
Bloomberg – Ronnie Wu, chief investment officer of the $400 million hedge fund of funds house Penjing Asset Management Ltd., will start a pool of money dedicated to providing early investments to new hedge funds next month.
It aims to make five to six investments with the flagship Penjing Asia Fund by year-end, he said in an interview yesterday. The new pool will begin with about $25 million from Wu’s family and friends and then raise capital from investors after the initial money has been deployed.
HedgeCo.net (West Palm Beach) – Swedish hedge fund manager, Brummer and Partners, is expanding its offering of hedge funds by launching Karakoram, a new long-short Asia fund today.
The new hedge fund will take both long and short positions in liquid equities on Asian markets such as Hong Kong, China, India, South Korea, Taiwan and Singapore. The Fund will base its positions on fundamental equity research, complemented with transaction-focused macroeconomic-analysis.
The fund’s aim is to consistently deliver a positive return for its unitholders, regardless of stock market performance in general, with a better risk-adjusted return than that of traditional equity portfolios.
Domiciled in Singapore, Ee Toh Chia is the Managing Director and a Partner of the hedge fund management company and is responsible for the management team. Ee Toh has 15 years of experience from Asian capital markets and has been involved in the management of the Zenit Fund’s Asian holdings since January 2008.
Karakoram has approximately SEK 300 million ($39 milllion) in assets under management. As Karakoram is a Bermuda-based fund a minimum investment of one million kronor ($131,000) is required. Brummer Multi-Strategy will initially invest a small proportion of its fund capital in the Karakoram Fund.
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Reuters – GSO Capital Partners LP, Blackstone Group’s $25 billion credit hedge fund, is closing its Asia investment desk after failing to find attractive investments in the region, sources familiar with the matter said on Tuesday.
The four-member team, led by Asia-Pacific head Timothy Donahue, will be relocated to either London or New York, the sources said, adding that GSO’s Asia fund raising team would remain in place.
The sources, who did not want to be identified because the information was not public, said GSO was shutting its Asia desk because there were better debt and credit investment opportunities in the United States and Europe.
