SHK and GFIA launch fund of Latin American hedge funds
GFIA, Asia's oldest hedge fund research firm, has launched The Latin American Fund of Funds with seed capital from Sun Hung Kai Financial Group (SHK).
This specialist fund of hedge funds will focus exclusively on hedge funds that invest primarily in the Latin American region. GFIA has retained a sub-advisor in Sao Paulo, Brazil, to assist in the manager selection.
According to GFIA, which was established in Singapore in 1998, the investment objective of the Latin FoF is to deliver significantly higher returns, with lower correlations, than the global fund of hedge fund universe, by investing in a portfolio of leading Latin American hedge funds.
SHK, a financial services conglomerate listed on the Hong Kong Stock Exchange, will shortly commence marketing to sophisticated investors globally. SHK is providing operational, compliance, and administrative services to the fund, while HSBC Institutional Trust Services has been appointed as external administrator and custodian.
The portfolio was invested on 1 November 2005, and the estimated return of the fund to date (including January 2006 estimates) is +5.2 per cent.
GFIA has covered Latin hedge funds since early 2004 and the company principal, Peter Douglas, has extensive experience in emerging market investments, having worked on single country vehicles investing in markets including Argentina, Brazil, Colombia, Mexico, and Peru, for F & C Emerging Markets in the mid-90's.
The Sub-advisor is Claritas Investimentos in Sao Paulo, Brazil, whose investment manager, Enio Shinohara, is a former partner of GFIA who has been allocating capital to Latin American hedge funds for more than eight years. Established in 1999, Claritas Investimentos is a fund management company specializing in alternative return products. It currently manages or advises in excess of USD 800 million in single manager and fund of fund strategies.
Paul H Smith, Global Head of Alternative Fund Services of HSBC Securities Services, acts as external director to the fund.
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