Alp Ercil, a prominent figure in Asia’s distressed asset investment space, is closing his $3bn flagship hedge fund and converting his firm, Asia Research & Capital Management (ARCM), into a family office, according to a report by Bloomberg.
The decision marks the end of a 14-year success story, as Ercil prioritises personal reasons for the transition, according to unnamed sources familiar with the matter.
Ercil has been notifying investors and employees in recent days, preparing for an orderly wind-down of ARCM’s distressed asset fund, which has been a standout in Asia’s hedge fund landscape. Yusuf Haque, ARCM’s chief operating officer, declined to comment on the developments.
Since its inception in 2011, ARCM has achieved exceptional performance with just one annual loss — 1% — in its history. The firm’s flagship distressed asset fund, the fourth in its series, delivered an impressive annualised return of 19.5% over the past five years, including a 10.5% gain in 2024.
The fund thrived without exposure to the technology sector, which has driven recent market rallies. Instead, ARCM focused on undervalued opportunities during the pandemic, purchasing developed-market investment-grade credit with long durations, including debt from US energy firms such as Apache Corp, Energy Transfer LP, and MPLX LP.
In recent years, the firm pivoted to commodities and traditional industries benefiting from the transition to cleaner energy. It avoided speculative bets on electric vehicles and solar power, instead profiting from demand for materials like lithium, copper, and steel driven by industrial upgrades and energy-efficiency initiatives. Additionally, ARCM bet on Japanese bank stocks, anticipating the Bank of Japan’s shift away from ultra-easy monetary policy.
ARCM’s closure is part of a broader trend in Asia’s hedge fund industry, where several prominent firms launched during the pre- and post-2008 boom have since shut down. Firms like Segantii Capital Management and BFAM Partners have faced challenges ranging from regulatory scrutiny to market shocks.
ARCM plans to return $3bn to investors as it liquidates its remaining assets, following the return of $1bn from Fund IV last year. The firm will retain a smaller team to manage partner capital in its new role as a family office.
Ercil founded ARCM after a successful career at Perry Capital, where he specialised in global investments in energy and cyclical industries. Initially staffed with Perry Capital alumni, the firm expanded to Dubai during the pandemic, cementing its reputation as one of Asia’s largest distressed asset investors.
