Pharo Management, a $7bn global macro hedge fund, is preparing to open an office in Abu Dhabi as it restructures operations for its Africa-focused investment team, according to a report by Bloomberg citing unnamed sources familiar with the matter.

The New York-headquartered firm, known for its emerging markets expertise, plans to relocate staff from both its New York and London offices to the UAE, specifically for its $819m Africa Fund, which trades local currencies, interest rates and credit. The Abu Dhabi outpost is expected to be operational by the end of this year.

The move underscores a broader trend among global hedge funds leveraging Abu Dhabi’s growing reputation as a prime hub for institutional asset managers, driven by tax advantages, investor access, and a time zone overlap with key frontier and emerging markets.

A spokesperson for Pharo confirmed the plans but declined to offer additional comment.

Pharo’s Africa Fund is up 11.8% year-to-date through May, according to a person with knowledge of the returns—placing it among the stronger performing macro strategies in a year marked by increased volatility and dispersion across emerging markets.