Finance industry professionals pose for a picture during the Hedge Fund Fight Nite in Hong Kong, an event that aims to raise HK$1 million for charity. (Photo : Getty Images)
A new hedge fund is being planned by the former Asia head of Balyasny Asset Management, who is currently negotiating for support from Blue Pool Capital, a firm that invests billions of dollars for rich clients that include two executives of Alibaba Group Holding Ltd., according to a report by Bloomberg.
People who asked not to be identified said that Avinash Abraham, the former Balyasny-Asian head, is planning to start a pan-Asia hedge fund that will bet on stocks, in November. He will deal through his firm, Torq Capital Management (HK). Neither the size nor the terms of the investment were disclosed.
Hedge funds, which have unstable markets, are having a hard time finding high-profile backers. According to eVestment, hedge funds in Asia have the worst redemption pressures as industry assets in the region have been reduced by 10 percent due to investor withdrawals. The data provider added that the region's managers have suffered a total of $6.3 billion of capital losses in the first six months of the year, the worst among its peers globally.
Blue Pool manages the investments of Hong Kong-based co-owners Alexander West and Oliver Weisberg, including the capital provided by Alibaba Chairman Jack Ma and Vice Chairman Joseph Tsai, a few close family friends and the firm's advisory board members, according to sources.
This year, three people from Australia-based Merricks Capital Services were hired by the firm, who were tasked to manage an internal market-neutral business that bets on stocks, in addition to the equity trading led by West, sources said.
Blue Pool is managed by the new type of Asian money managers that combine the long-term capital with the organizational structure of independent investment firms.
RBC Wealth Management and Capgemini reported that individuals in the Asia-Pacific region who possess $1 million worth assets have risen in number to 5.1 million in 2015.
The Bloomberg Billionaires Index has placed Jack Ma as Asia's richest man with an estimated fortune of more than 32 million.
