Global Asset Management is heading East with its 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 looking for some exposure to the Asian market. It will aim to outperform the MSCI all countries Asia Pacific excluding Japan fund.
The fund managers will choose a spread of companies over a wide geographical area, including India, Singapore, Indonesia, China, Australia and Malaysia. They will take a top-down approach, looking at the overall economic picture before concentrating on specifics.
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.
It will not be investing in Japan but the Japanese economy has an immense effect on the countries around it. Japan is in recession and this is dragging the region down. GAM feels there are some good opportunities while prices are low.
Asian hedge will be run by John Mytton in Hong Kong, GAM's investment director for Asia excluding Japan investments. Mytton joined GAM in 1995 after five years as director of Swiss Bank Corporation International Finance (Asia).
According to Standard & Poor's, of the nine funds run by GAM, four are first-quartile, two are second-quartile and two are third-quartile over three years to November 26, 2001.