Lion Fairfield Capital Management Limited has launched the Fairfield Falcon Pacific Japan Equity Fund Ltd.
The fund, which will take long and short position in listed Japanese equities, is an exempted company incorporated with limited liability in the Cayman Islands, and is the sixth single manager hedge fund launched by Lion Fairfield — a joint venture between Lion Capital Management Limited and Fairfield Greenwich Group (FGG) — over the last six months.
Fairfield Falcon will receive an allocation from Lion Fairfield’s flagship Asia-focused multi- strategy, multi-manager fund, Fairfield Lion Investment Fund (Asia) Ltd.
Lion Fairfield will serve as the Investment Adviser and Fairfield Greenwich Advisors, LLC, a FGG member company, will serve as the Manager of the fund. As with all funds on the Lion Fairfield and FGG platforms, the Sub-Adviser of the Fund will provide Lion Fairfield and FGG with complete transparency to the securities level of their portfolios, allowing the Investment Adviser and the Manager to comprehensively monitor the fund’s portfolio for investment and operational risks.
The Fund’s Sub-Adviser is Falcon Pacific Capital Management, LLC, which is based in Corvallis, Oregon and Tokyo, Japan, and is the manager of Falcon Pacific Japan Master Unit Trust. Fairfield Falcon will invest substantially all of its assets into this Master Fund, which employs fundamental, bottom-up research, and Falcon Pacific’s substantial experience in equity research, valuation, and trading in the Japanese equity markets, to seek superior risk-adjusted returns with low relative volatility, in keeping with the investment philosophy of Lion Fairfield and FGG. As with all funds on the joint venture’s platform, Fairfield Falcon will seek to maintain a commitment to capital preservation.
Steven Weiler, Chief Investment Officer of Falcon Pacific, and Nicholas Smith, the firm’s Director of Research, have a long working association dating from when they were both No1-rated sell-side analysts covering Japanese securities for Jardine Flemings Securities in Tokyo; they are both fluent in Japanese and each have over 17 years of experience living in Japan and investing in its markets.
Prior to founding Falcon Pacific, Weiler was Head of Equity Research for Penta Investment Advisers, a large Japan-focused hedge fund management company, as well as an Analyst and Investment Manager for Fidelity International. Prior to joining Falcon Pacific, Smith was also employed by Penta Investment Advisors as Senior Analyst, as well as by ABN AMRO Securities (Asia) as a Director and Senior Analyst.
Falcon Pacific’s head trader is also fluent in Japanese and has over 16 years of experience investing in Japanese markets; a seasoned COO rounds out the firm’s investment team.
‘We have high expectations for Fairfield Falcon, Lion Fairfield’s first Japan-focused fund, because its investment team has had long experience and substantial success investing in what they know and in areas where they believe they have an edge,’ says Peter Heng, Board Director of Lion Fairfield. ‘We believe that they are well positioned to exploit structural and informational inefficiencies in the Japanese markets.’
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