| HONG KONG
HONG KONG Jan 30 FRM Capital Advisors (FCA), a
unit of Man Group Plc, is returning to Asia to back
former Highbridge Capital portfolio manager Toby Bartlett's
hedge fund, as a tough capital raising environment in the region
Hong Kong-based Bartlett, who got a licence for his Japan
focused long/short equity hedge fund firm Arena Capital in
August, will get $25 million initially from FCA, Patric de
Gentile Williams, head of seeding at FRM, said by telephone.
FCA had pulled out seed capital from its lone Asia-based
investment in Isometric Investment last year and had been
looking for managers since. Arena is the first bet by the
seeding division of FRM after it was acquired by Man Group in
May 2012. Man manages $60 billion globally.
A seeding fund injects early stage capital into a hedge fund
in exchange for a cut of the fund's revenues. Managers typically
show reluctance to share profits but seeding businesses flourish
when it gets tougher to raise capital.
They generally take 20-30 cents of every dollar earned by
hedge funds in addition to their share of the return generated,
a price many smaller managers and start-ups in Asia are willing
to pay in exchange for long-term capital and other help.
Bartlett managed the Asian consumer sector for JPMorgan
Chase Asset Management unit Highbridge with a focus on Japan,
according to one of his former colleagues, who was not
authorised to talk to the media and thus declined to be named.
He left the firm at the end of 2011 to start his own fund.
The fund manager worked for Ken Griffin's Citadel Investment
Group between 2007 and 2009 and global mutual fund firm Fidelity
Investments between 2004 and 2007. He focused on Japan at both
the firms, a marketing document obtained by Reuters showed.