CORRECTED - UPDATE 1-Ex-Tiger Asia's Kim readies fund with $30 mln seed

Fri May 27, 2011 9:31am EDT

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(Corrects third paragraph)

* Starts New York-based Greyson Capital Management

* Plans to launch Asia long/short equity hedge fund

* Sources briefed by Kim this week expect launch in Q3 (Adds details, background, quotes)

By Nishant Kumar

HONG KONG, May 27 (Reuters) - Former Tiger Asia managing director Hugh Kim is preparing to launch a long/short equity hedge fund focused on Asia with about $30 million in seed capital, two sources briefed on the plan said.

Kim, who set up New York-based Greyson Capital Management after spending about five years at Tiger Asia Management, is meeting investors to raise money, the sources said, joining a crowded market for Asia dedicated long/short equity funds.

In March, Kim left Tiger Asia which is backed by Julian Robertson who established Tiger Management in 1980 and grew it into one of the industry's top firms with average annual returns of 30 percent. Its assets peaked at $22 billion in 1998.

The Greyson Asia focused fund will be launched in the third quarter, said the sources, who attended a presentation by Kim at a hedge fund capital introduction conference organised by Morgan Stanley (MS.N) in Beijing this week.

"Hugh Kim's resume suggests that he will get meetings with investors, and should raise reasonable capital for a boutique," said Peter Douglas, a veteran hedge fund analyst and principal of Singapore-based GFIA Pte.

"It's a fairly generic Asian hedge fund strategy, so the proof will have to come in the performance and risk numbers he generates," Douglas said.

The sources declined to be named as they were not authorised to speak on the matter.

Asia has 689 long/short equity funds managing about $63 billion, or roughly half the assets under management of the industry in the region, according to data from fund tracker Eurekahedge.

Kim's sessions were well attended during the Morgan Stanley conference given his pedigree and association with Tiger Asia Management, the sources said.

But Greyson's New York location at a time when more foreign managers are opening offices in the region, the fact that it was a new business and its high gross exposure were seen as negatives, another source said.

Billionaire Robertson has grown what has been called the $2 trillion hedge fund industry's biggest family tree, helping to start more than three dozen hedge fund firms.

Robertson closed his funds and gave his investors their money back a decade ago. He has remained active by offering many of his former colleagues or so-called Tiger cubs money to start their own hedge funds. (Reporting by Nishant Kumar; Editing by Jonathan Hopfner and David Cowell)

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