Global Asset Management (GAM) is heading east with the introduction of the GAM Asian hedge fund.
Based in Hong Kong and domiciled in the British Virgin Islands, this is an offshore hedge fund aimed at the sophisticated investor who is looking for some exposure to the Asian market. It will aim to outperform the MSCI all countries Asia Pacific ex-Japan fund.
The fund managers will choose a spread of companies over a wide geographical area, including India, Singapore, Indonesia, China, Australia and Malaysia. The managers will take a top-down approach, looking at the overall economic picture before concentrating on specific sectors and companies.
The fund will be run by going long and selling short on the companies chosen, investing in those that look promising and selling shares in companies that could start to go down in value.
GAM Asian hedge will not be investing in Japan. However, the Japanese economy has an immense effect on all the countries around it. At the moment Japan is in recession, with the economy shrinking and this is dragging the region down with it. GAM admits that times are bad in this area, but feels there are some good investment opportunities while prices are low.
Asian hedge will be run by John Mytton in Hong Kong, GAMs investment director for Asia excluding Japan investments. Mytton joined GAM in 1995 after spending five years as director of Swiss Bank Corporation International Finance (Asia).
According to Standard & Poors of the nine funds run by GAM, four are first quartile, two are second quartile and two are third quartile, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to November 26, 2001.