The head of Nomura Holdings Inc’s Global Opportunities Group prop trading desk, Benjamin Fuchs, is planning to start his own hedge
The head of Nomura Holdings Inc’s Global Opportunities Group prop trading desk, Benjamin Fuchs, is planning to start his own hedge fund in Hong Kong and has targeted at least USD400million people familiar with the plans told Bloomberg this week. Nomura are thought to be backing the “commingled” fund to the tune of USD200million according to a marketing document seen by Bloomberg. The new firm being set up by Fuchs is entitled BAF Capital, based on his initials. The Global Opportunities Group is expected to begin life as BAF later this year. It is currently part of Nomura Principal Investments Asia Ltd. This is yet another example of a prop desk spin-off; a growing trend in 2011. Consequently, the hedge fund will hit the ground running with a full team and infrastructure: something new funds need time to develop. BAF will have some 24 employees, 13 of whom will be investment professionals according to the document. With other spin-offs like Morgan Sze’s Azentus Capital doubling its assets to nearly USD2billion already this year, attracting significant institutional tickets is an easier task. Investors are predisposed towards favouring high profile, pedigree managers with proven track records. It is also believed that Nomura will provide BAF with a working capital loan. The new fund will trade equity-linked products ranging from convertible bonds to equity volatility.
