FRM Capital Advisors, the hedge fund seeding division of Financial Risk Management, has formed a relationship with Sensato Capital Management which involves FCA investing up to USD50m with Sensato.
Sensato was founded in May 2009 by the former co-heads of active equity strategies at Barclays Global Investors, Ernest Chow and Jonathan Howe.
Sensato builds on the pair’s experience at BGI, adopting a fundamental, quantitative approach to investing in Asia Pacific equity markets that is designed to deliver compelling returns while avoiding concentration risk, macroeconomic risk and beta risk.
FCA’s investment will provide Sensato with additional investment capital and the resources to further build out its century investment platform.
Patric de Gentile-Williams, chief operating officer of FCA, says: “Ernie and Jonathan’s impressive performance at BGI and experience building and managing a strong team are a testament to their calibre and talent. We feel their strategy is well suited for investors looking for returns from Asian markets through a rigorous, relative value approach designed to extract alpha from markets. They have already built an impressive team and research and systems infrastructure and we look forward to supporting their development going forward.”
Chow adds: “We expect institutional investors to continue to increase their exposure to Asian markets. We believe that our flexible long-short approach can offer these investors a valuable source of alpha and having a significant investment from a highly regarded company such as FCA will help us attract interest from other investors and further develop our business.”