Hong Kong-based Myo Capital Advisers has announced the launch of the Myo Capital Master Fund, with significant capital from an institutional seed investor, to take advantage of the current
Hong Kong-based Myo Capital Advisers has announced the launch of the Myo Capital Master Fund, with significant capital from an institutional seed investor, to take advantage of the current dislocation in credit markets and target undervalued credit situations in Asia outside Japan.
The fund, which has a capacity of USD500m, will seek investments where there is a high probability of price appreciation, due to either an event or catalyst, while seeking to minimise capital loss. It will invest in four complementary credit-related strategies, high-yield credit, distressed, special situations, and event-driven equity, which can be sized depending on the opportunity set.
‘This is the right time to be looking at credit opportunities in Asia,’ says Myo Capital chief executive Justin Ferrier. ‘Credit spreads have blown out globally and Asian spreads have followed those in the US and Europe despite the fact that Asian corporates, and Asian banks, are better capitalised and better positioned for growth.’
Managing director Geoff Lee adds: ‘We have put together an experienced team with direct on-the-ground
experience covering the markets of China, Indonesia, Thailand and Malaysia alongside the regional centres of Hong Kong and Singapore. We are well positioned to identify and capitalise on the opportunities that will arise from the current credit dislocation.’
Myo Capital believes it is one of the few Asian fund managers investing across the entire credit spectrum. The team has experienced specialists in credit trading, special situations and distressed debt.
‘There are significant synergies between the credit sub-strategies in terms of sourcing, analysis and execution,’ Ferrier says. ‘For example, if we are looking at a distressed credit we like in Thailand, our Thai analyst can provide on the ground local analysis, while our trader, will provide real time market pricing and source the credit from a large number of international participants at the best possible prices.’
The fund has appointed Merrill Lynch as prime broker, Simmons & Simmons as international legal counsel, Maples and Calder as Cayman legal counsel, Ernst & Young as auditor and HSBC as administrator.
Myo Capital was founded last year by Ferrier and Lee to take advantage of the dislocation of Asian credit markets. The firm currently has 10 experienced and predominantly Asian staff with backgrounds in high-yield trading and research, private equity, distressed debt and special situations at investment banks and fund managers.
