West Palm Beach (HedgeCo.net) – One of Hong Kong’s largest independent financial institutions, Sun Hung Kai Financial, is teaming up with hedge fund Paulson & Co, launching a distressed asset investment fund, according to a Reuters report.

John Paulson will act as the new $100 million offshore fund’s investment manager. The fund will only be open to professional investors and will feed into Paulson’s existing “recovery fund”, which invests in distressed financial assets, according to the report.

With approximately $29 billion in assets under management Paulson hedge fund has offices in New York, London and Hong Kong. Sun Hung Kai has over HK$50 billion ($6.45 billion) in assets under management, Reuters said, together, the funds plan to invest globally, but are focused mainly on the United States.

Rizal Wijono, Managing Director at SHK Fund Management Limited, the Sun Hung Kai’s asset management business said, “There is a lot of turmoil in the U.S., which is Paulson’s home market. They’ve been looking at a approximately 100 financial institutions who they think are going to be the survivors and the failures,” he said, “To date, they’re looking into Asia, but they haven’t identified potential positions yet. If you’re looking for maximum appreciation, the obvious place is the developed world.”

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Financial Standard- DWS Investments could well be one of the pioneers of a new era in hedge funds when it launched a new product that offers daily liquidity and pricing to retail investors.

DWS Investments, Deutsche Bank’s global retail asset management arm, last week launched the DWS Strategic Value Fund (Enhanced Liquidity) – a product designed to give exposure to an actively managed, multi-strategy, fund-of-hedge funds.

According to Jody Fitzgerald, investment specialist at DWS Investments, the underlying DWS Strategic Value Fund will face no changes to its operations or strategy as a direct result of the heightened liquidity.

“The liquidity is being synthetically organised outside the fund. The Strategic Value Fund is the underlying product, and sitting outside the fund are investment certificates issued by Deutsche Bank. These certificates are the ones that will provide the liquidity," said Fitzgerald.

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