HSBC Holdings, a UK-based financial services giant, is looking out for investment opportunities in Asia hedge fund industry.
The company is keen to leverage the drop in research staff of counterparts that resulted in hurdles for small hedge fund mangers’ expansion. It has made investments in local firms including Zeal Asset Management, Myriad Asset Management and Tybourne Capital Management (HK).
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HSBC regional head of alternative investment group Henry Lee told Bloomberg that a HSBC program comprises 15% of the Asian managers providing capital to smaller hedge funds.
"With less proprietary trading than before and less assets under management trading those hedge-fund strategies than before, Asia’s markets are providing an excellent playground for talented individuals to express themselves," added Lee.
The lender lets its private bank clients to opt their own investments with its next generation program, designed to make investment in small but potential hedge fund players. The firm claimed that less than $3bn of hedge fund investments are through funds-of-funds, while the remaining are in customized accounts for clients.
HSBC has a focus list consisting of 12 promising hedge fund managers that it recommends to its investors. The company is keen to expand the list to 15 funds over next few months.
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By GlobalData"We’re trying to introduce more of an Asian flavor locally," added Lee.
