London-based New Star Asset Management has opened a USD 25 million R Share Class for private investors in the New Star Japan Hedge Fund.
Philip Goldsmith, Managing Director of New Star International said: "The securing of a tranche of the New Star Japan Hedge Fund provides private investors throughout the world access to New Star's highly rated Japanese team who have a fantastic record of managing long/short money. Their focus is to produce superior risk adjusted returns for investors from the turmoil occurring in Japan".
The New Star Japan Hedge Fund is a long/short equity fund. Michelle Sanders and Alastair MacGregor, who manage the New Star Japan Hedge Fund, have more than 20 years combined experience in Japanese equities. Their New Star Japan Recovery Fund, a long-only Japan equity, rated A by Forsyth Partners, is ranked top decile in its sector since launch.
New Star stated: "The New Star Japan Hedge Fund has outperformed the MSCI Japan Index by 26.5 percentage points and has outperformed Japanese long/short hedge funds+ generally by 7.4 percentage points. The fund has risen every calendar quarter since launch".
The New Star Japan Hedge Fund R class provides private investors access to New Star's experienced managers with proven Japanese hedge fund track record. The Fund seeks to take advantage of corporate restructuring in Japan, which on a stock basis, is resulting in clear winners and losers from a more economic capital allocation. The aim of the Fund is to produce superior risk-adjusted absolute returns in all market conditions using a strategic fundamental stock picking approach predominantly concentrating on mid-cap companies.
The Japanese Long/Short Investment Opportunity
New Star stated: "Japan has suffered from a profound bear market and deflation; the Japanese stock market has fallen by approximately 50% since 1989. Whilst the outlook for the Japanese economy is mixed, the investment opportunities on a stock level are vast, on both a long and short basis."
"Japanese companies are experiencing sweeping fundamental changes after years of state protection, poor returns on capital and inadequate focus on shareholder value. These changes are a result of increased competition and a re-pricing of capital, which is forcing companies to improve their performance to remain viable. This environment is producing clear winners and losers and this investment background is particularly suited to a long/short investment strategy."
The minimum investment for the New Star Japan Hedge Fund R Class, which is currently available until 5 December 2003, is USD 25,000. The annual management fee is 2% with a performance fee of 20%.
Michelle Sanders has four years long/short experience and 15 years' experience in total managing money in the Japanese and North East Asian markets. She joined New Star Institutional Managers (formerly WorldInvest Limited) in 1992, prior to which she was an investment manager at Kleinwort Benson Investment Management. Sanders has been Head of Japan since 1992 and is also a fund manager for New Star Asia Renaissance Fund, an Asia, including Japan long/short equity hedge fund that was launched in December 1999.
Alastair MacGregor has five years experience in Japanese Equities, more than two of which are in long/short strategies. He joined New Star Institutional in 2001 as part of the Asia Renaissance Hedge Fund management team, specialising in Japan. Prior to this he was Japanese hedge fund manager at Balfour Capital, where he was also head of risk management.
Background Note: New Star has USD 6.7 billion in assets under management as at 5 August 2003.New Star's hedge fund business, which is headed by Charles Tritton, currently has more than USD 500 million under management. Its range includes Asian, European and UK strategies. New Star has a staff of more than 170 people, including 40 investment professionals, and has offices in London, Dublin, Bermuda and Hong Kong.
copyright hedgeweek 2003