Former Dexion Capital and Morgan Stanley veteran Andrew Gale and Lee Ka Shao, who managed an absolute return mandate at DBS Bank, Singapore, after trading at JP Morgan, have launched th
Former Dexion Capital and Morgan Stanley veteran Andrew Gale and Lee Ka Shao, who managed an absolute return mandate at DBS Bank, Singapore, after trading at JP Morgan, have launched their maiden fund, Cavenagh Asia Macro.
Gale (pictured) is the chief executive and Lee is the chief investment officer of the fund management company, Cavenagh Capital.
Singapore-based Cavenagh will aim to make uncorrelated returns by constructing a portfolio of trades with an asymmetric pay-off in Asian interest rates and currencies.
Investment decisions will be driven principally by top-down macro-economic and business cycle analyses and will be skilled based, not beta-reliant.
‘The launch of the new fund is based on numerous meetings with investors,’ Gale says. ‘In the course of these discussions it has become apparent that most investors look to their macro investments to be a diversifier providing a different source of returns than the inherent beta in credit and equity strategies. The current market environment provides many opportunities for a macro approach.’
The fund commences trading on 1 May. The minimum investment is USD100,000 and the fund managers estimate capacity at USD2bn.
Gale has 23 years of experience in financial markets, most recently with Dexion Capital in London between September 2004 and October last year. He was responsible for product development and asset-raising for the firm’s London-listed closed-ended funds of hedge funds and third party funds, developing Dexion’s investor base throughout the UK, Europe, Asia and Australia.
Earlier he spent more than 15 years with Morgan Stanley in London and Singapore. In 1995 he moved to Morgan Stanley in Singapore as head of fixed income sales for South-East Asia, where he focused on foreign exchange, interest rates, derivatives and credit products.
Lee was most recently a founding member of Abax Global Capital in Hong Kong, where he concurrently managed both the South Asia special situations portfolio and macro positioning. Previously he established and ran the principal strategies business as managing director of the central treasury unit at from 2001 to 2007, managing a multi-billion-dollar portfolio on an absolute return basis with a Ggobal-Asian macro and situational approach across multiple asset classes.
