Hong Kong

Former Lone Pine and Goldman Sachs executives plan Hong Kong hedge fund

A new hedge fund scheduled to launch in July is being planned by former Lone Pine and Goldman Sachs executives and will feature an innovative fee structure reported Reuters this week. Eashwar Krishnan, a former Asia head of hedge fund Lone Pine Capital, and Tanvir Ghani, who previously headed up capital introduction for Asia Pacific at Goldman Sachs hope to raise USD1billion for the new fund called Tybourne Capital Management. Apparently the duo are putting together a team of at least 19 staff for the long/short equity hedge fund which is set to commence trading 2 July 2012. Although the fund will have a global mandate it will feature an Asian bias. Sectors such as consumer, technology, media, financials, telecommunications and industrial will be the core focus. Tybourne aims to attract 70 to 80 per cent of the assets for durations of three and five years to help it take a longer investment view, something that John Ho’s Janchor Partners has utilized with great success in recent times. Unlike most hedge funds, where the minimum investment is USD1million, investors with Tybourne will need to commit at least USD5million. Tybourne will halve the performance fee in exchange of a “modified high-water mark”, which allows it to charge performance fees on gains even after periods of losses. The discount will remain until the high-water mark is reached and until the fund recovers 250 per cent of the losses. Most hedge funds employ a 2/20 structure, charging a 2 per cent management fee and 20 per cent performance fee.     

 

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