According to anonymous sources, three former managing directors of Goldman Sachs’ Japan business are planning to launch a multi-strategy hedge fund in Asia next year.
Koji Gotoda and Takayuki Kasama’s fund, called Golvis Investment Pte, will invest in asset classes with an initial focus on Japan. According to one of the sources, hedge funds that focus on Japan generally trade stocks. Therefore, the new team of former GS employees with the ability to invest in multiple asset classes will stand out.
Peter Douglas of GFIA Pte explained: “The pedigree of the principals will guarantee they at least get a good hearing from prospective allocators. After many years of slow death or exile for the Japanese hedge fund industry, it does feel as if the industry, like the country, could be on the verge of a renaissance.”
According to Bloomberg News, Gotoda will present his plans at the annual Goldman Sachs Asia Hedge Fund Symposium in Tokyo.
Pacific Alternative Asset Management Co is turning to Asia to diversity its investor base. The fund-of-hedge funds is an $8.6 billion US company with US investors that account for 85% of its clients.
As David Walter, the Singapore-based director for the Irvine, California company known as Paamco, said, the company is now looking at Asian managers who are employing relative-value strategies.
Paamco wants to capitalize on the growing demand in Asia for alternative investments like hedge funds, hedge fund strategies and real estate. According to a recent survey by Natixis (KN) Global Asset Management, 30% of institutional investors in Asia want to increase their holdings of alternative and non-correlated assets in the next 12 months. As Walter recently said, “Asian investors are becoming more sophisticated and open to alternative investments. There is now great potential to expand our relationships in the region.”
As Walter explained, “In both cases, as investors get more sophisticated, they are increasingly going directly into large global hedge funds. That’s where we see interest — is working with them in building customized portfolios of emerging managers to complement their existing holdings.”
At the moment, Paamco is invested in 10 managers that are focused in Asia. The majority of them are in equities, while some are in credit, currencies, rates and commodities. They are mostly based in Hong Kong and Singapore, while one is in the UK and one in the US.