Ex-SAC trader Akay's hedge fund to launch next week

LONDON (Reuters) - Ali Akay, a former trader at Steven Cohen's SAC Capital Advisors, is set to launch his emerging-markets focused hedge fund next week after raising around $200 million, a source familiar with the situation said.

London-based Carrhae Capital will begin trading on December 1 and invest in emerging market equities, according to the source, who is familiar with hedge fund capital raisings and who spoke on condition of anonymity.

The fund will look to soft close at around $500 million in early 2012, the source added.

Before establishing Carrhae Akay worked at SAC, the $14 billion Stamford, Connecticut-based hedge fund founded by billionaire Steven Cohen and launchpad for a number of hedge fund managers to go it alone.

Despite huge market uncertainty making for a tough capital raising environment, well-known traders with a track record are still attracting investments for start-up funds -- particularly those with a specialism in playing emerging market assets.

Avantium Investment Management, the hedge fund started by Deutsche Bank's (DBKGn.DE) ex-head of emerging markets trading Kay Haigh, is close to doubling its assets since launching last month, two sources familiar with the fund said.

The Avantium Liquid EM Macro Master Fund, which began trading on October 10 with $180 million, is expected to grow its assets to $350 million by Dec 1., one of the sources said.

The emerging markets macro fund will be capped at $1 billion, the source added, speaking on the condition of anonymity.

Macro funds are focused on major economic trends and events and invest across asset classes including in currencies, credit and interest rates.

Haigh left Deutsche Bank in the first quarter of this year with a team of eight to launch Avantium, which has offices in London and New York, and was one of the most keenly-awaited start-ups in 2011.

"Kay Haigh was a leader in his space with a very strong track record at Deutsche. You're not often going to get someone like that coming out with a product that investors can participate in, so something like that is somewhat unique," the source familiar with capital raisings said.

London-based Avantium declined to comment. Carrhae did not respond to an email request for comment.

A regulatory clampdown in the United States under the Volcker rule on so-called proprietary traders, who use banks' own capital to invest, has forced many star managers to set up shop on their own.

Several high-profile hedge fund launches, including from managers who have worked on bank proprietary trading desks, are expected next year.

These include Falcon Edge Capital, another emerging markets focused fund, set up by ex-Blue Ridge Capital and ex-Eton Park Capital traders, the source familiar with hedge fund capital raisings said, while Sutesh Sharma, one of Citigroup's (C.N) top proprietary traders, is also expected to launch a widely-anticipated fund.

(Editing by Douwe Miedema)