The Maples Group is acting as administrator of the Fountainhead Alternative Vehicle (FAV), Hong Kong-based multi-family office Fountainhead Partners’ USD285 million fund of hedge funds (FoHF) which has an estimated YTD return of 33 per cent.Having supported Fountainhead since 2016, the Group’s fund services business provides a full range of administration services to FAV, including fund accounting, investor services, and AEOI and AML compliance support. Its customisable approach, robust technology and infrastructure, coupled with the expertise and experience of its team in working with sophisticated family office clients were key elements in Fountainhead’s decision to engage the Maples Group and the high quality service and support that has been delivered has further solidified the relationship.
Fountainhead invests its own capital and takes a diligent approach to manager selection, with a specific focus on managers in the Asia Pacific region. The founders of Fountainhead are all industry veterans and native Mandarin and English speakers and place a particular focus on managers with an ability to demonstrate independent thinking and that bring a unique perspective and strong investment philosophy. In addition, FAV managers bring a different source of alpha to avoid over-concentration, control exposure and ensure maximum risk control. As a result of this approach, FAV counts 15 funds in its portfolio with 85 per cent of the managers Asia-based and has delivered an annualised return of 16 per cent since its January 2017 inception. As of 30 June 2020, its fund administrator calculated YTD return is 24 per cent.
“2020 has proven to be a major stress-test year for hedge fund managers and has served as a good marker for separating good managers and manager selectors from so-so managers and manager selectors,” says Harry Pang, Founding Partner of Fountainhead. “In this respect we have increasingly recognised the value and performance that Asian managers can deliver with their focus on the entire investible universe and reasonable fund sizes and are pleased with the superior risk-adjusted returns FAV has seen. As some investors are losing interest in the pedestrian hedge fund returns over the past years, we believe FAV’s performance injects some excitement to the industry and proves that good hedge fund returns are still possible, and the source is in Asia. As we grow, we are proud to have a longstanding partner like the Maples Group which delivers consistent efficiency to our operations that drives real business results.”
“Our engagement with Fountainhead and the performance of FAV is a testament to the growth of the hedge fund market in Asia and the demand for the superior performance Asian managers are delivering,” says Eastern Fong, Regional Head of Fund Services – Asia for the Maples Group. “We appreciate our partnership with Fountainhead and look forward to supporting their next phase of growth and evolution as FAV undoubtedly solidifies its position as one of the top performing FoHFs.”
