Hedge Fund Research Asset Management and Hong Kong-based Oria Capital have joined forces to launch a principal protected Asian fund of hedge funds.
The fund will provide the stability of investing in the HFRX Global Index with the more aggressive return characteristics of Asian hedge funds.
The new Asian focused fund, to be called the HFR Oria Asia Principal Protected Note, will be 50% invested in the Oria Asia Fund, which consists of 20 Asian based sub-funds covering 8 different hedge fund investment strategies and offering exposure to up to 14 countries in the region including China and Japan.
The other 50% will be invested in five HFRX sub-indices with low correlation to the Oria Asia Fund and will be actively managed by HFR. An 8-year principal protection will be provided by Barclays Bank.
The fund will be distributed by Oria Capital and Barclays Capital in Asia and by HFR in Europe and will be offered to sophisticated institutional investors only. Investment in the fund will be available in US Dollars. The fund will close on 9 January 2006.
John Godden, Managing Director of HFR Asset Management, said: "Oria Capital specializes in one of the world's hottest investment markets and has a team with unparalleled experience. With good funds in Asia closing to investment on average just 12-24 months after their launch, there is constant demand for exposure to and expertise within the region. Teaming up with Oria Capital will enable HFR to offer its investors access to the very best of available investment opportunities in Asia."
The Asia markets have been one of the most dynamic areas for hedge fund investing over recent years and now account for over USD 80 billion of hedge fund assets with more than USD 25 billion flowing into hedge fund investments in the region in 2004 alone.
Oria Capital's management team has an average of over 15 years of dedicated experience of Asian market investing thereby offering investors their extensive knowledge of, familiarity with, and exposure to Asian market opportunities. In keeping with Oria Capital's existing investment strategy, the new fund will seek to tap into very specific and diversified Asian alpha sources in contrast to the general trend amongst Asian fund of funds which predominantly invest in long/short strategies, with a primary emphasis on long.
Oria Capital has two global funds of funds and the Asian Fund of Funds. Oria Capital will also be launching a single strategy fund shortly. It currently has about USD 114 million under management, and is understood to be negotiating a deal right now that will significantly increase that number.
Jennifer Carver, Chief Executive Officer of Oria Capital, added: "Oria Capital and HFR Asset Management are natural partners as our businesses both share a common philosophy based on rigorous reporting and full transparency for investors. This is an enormously exciting product which will add to our stable of existing fund offerings at Oria Capital as well as the universe of possible investment opportunities for those seeking exposure to the rapidly growing high return markets of Asia Pacific."
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