KGR Capital is launching the KGR Capital Asian Dynamic Absolute Return Fund, a multi-manager, multi-strategy fund of Asian hedge funds.
The fund, which is due to launch on 1 September, will initially have a portfolio of 27 hedge funds, including 11 strategies. Just over 40 per cent of its exposure will be to Japanese strategies, whilst the rest will be allocated to other parts of Asia, including the rapidly growing economies of Greater China, Korea and India. The manager is targeting returns of 15-20 per cent over the cycle, and is expecting volatility to be about 7-10 per cent.
KGR Capital launched its first specialist Asian fund of funds, the KGR Capital Asia Pacific Absolute Return Fund, in August 2003. Since then it has given initial investors a 9.9 per cent annualized return, with a volatility of 4.12 per cent. The Dynamic fund will have a number of overlapping managers, but will be targeting higher returns, and will accept a higher level of overall risk.
"The Asian Dynamic fund will enable us to offer those investors who have a higher appetite for risk, the ability to leverage off our established research and risk management expertise to benefit from the rapid growth of absolute return strategies in the vibrant economies of the Asia Pacific region," said John Knox, one of the founders of KGR Capital.
The fund will be domiciled in the Cayman Islands, and will target professional and institutional investors. There will be EUR and GBP classes as well as the main USD class. It will have monthly subscriptions and redemptions, and the minimum investment is USD 100,000.
Background notes: KGR Capital is one of the leading specialists in Asian hedge funds, and is headquartered in Hong Kong. The company was formed in 2002 by John Knox, Nick George and Christopher Rampton, all of whom had worked together for many years in Asia in senior roles at Jardine Fleming and JPMorgan. The company employs 10 professionals, and has offices in Hong Kong and London.