UPDATE 1-Ex-Goldman trader plans China, Japan hedge fund-sources
(Adds details, quotes, background)
HONG KONG Nov 26 (Reuters) - Former Goldman Sachs Group Inc trader Andrew Wang is preparing to launch an Asia hedge fund that will bet mainly on the coveted combination of Chinese and Japanese shares to profit from revived investor interest in Asia's top two economies.
Asia has dozens of hedge funds investing into both countries separately but funds that combine the two are rare.
Hedge funds investing in Japan and Greater China have returned 22.8 percent and 13.5 percent respectively so far this year, according to data from industry tracker Eurekahedge, outpacing the average 12.95 percent return from broader Asia-wide hedge funds.
Wang, a Chinese who speaks fluent Japanese, is currently in talks with investors and aims to raise $50 million to $100 million to launch the fund by early next year, said people familiar with the matter who declined to be named as details about the fund are confidential.
The fund targets a 20 percent annual return, they added.
Redstar executives were not immediately available for comment.
"We believe that both China and Japan, the No. 2 and No. 3 economic powers, are structurally positioning a turning point - a de-leverage cycle and re-leverage cycle respectively," Wang told clients in a fund marketing document obtained by Reuters.
"These structural changes are likely to provide big investment opportunities, both on the long-side and short-side," he wrote.
The Hong Kong market regulator last week granted a licence to Wang's Redstar Auspicious Capital Management to start the fund. Wang, who left Goldman earlier this year, is one of several bankers who set up investment firms as U.S. regulators restrict banks from trading with their own money.
Japan has this year lured investors as the monetary stimulus programme launched under Prime Minister Shinzo Abe sent the yen sliding and stocks surging.
China's reform agenda has reinforced investor confidence in the world's second-largest economy, making money managers such as BlackRock and HSBC Global Asset Management turn positive about its prospects.
Wang, a former managing director at Nikko Asset who also managed the first China A-shares mutual fund, was a proprietary trader in the Asian shares trading department of Goldman Sachs.
He is joined at Redstar by former Triskele Capital Management CIO Shiba Tsuyoshi as head of research, the document showed. (Reporting by Nishant Kumar; Editing by Miral Fahmy)
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