By Nishant Kumar
HONG KONG Feb 10 Two former top traders at
Goldman Sachs and Noble Group are planning to form a hedge fund
in Asia, a source with knowledge of the matter said, in another
high profile launch in the region.
The fund's creation comes as global regulatory changes
restrict banks from trading with their own money, forcing
so-called proprietary desk traders to strike out on their own.
It also comes as investor interest in hedge funds in Asia
makes its strongest comeback since 2007 and on the back of the
industry's strong performance in 2013.
Leland Lim, who was the co-head of macro trading for Asia
Pacific ex-Japan at Goldman Sachs Group Inc, is teaming
up with Allan Bedwick, the former head of macro trading in Asia
for Noble Group, to launch a macro hedge fund in the
second or third quarter of 2014, the source said.
Lim, who joined Goldman in New York in 1997 on the foreign
exchange options desk, retired last month from the Wall Street
bank, while Bedwick quit the Singaporean commodities firm in
Lim moved to Asia in 1999. Prior to becoming the co-head, he
managed Asia Pacific ex-Japan foreign exchange and interest rate
derivatives trading, according to an internal memo sent to
Goldman staff announcing his retirement.
The source could not estimate the start-up capital as the
plan was at an early stage and the duo has yet to register the
firm in Hong Kong.
Asian hedge funds returned an average 16 percent last year,
outperforming a less than 10 percent gain by global peers and
attracted net inflows of $11 billion in 2013, the highest since
2007, according to data from industry tracker Eurekahedge.
Dozens of proprietary traders globally have spun off from
banks to start their own hedge fund since the financial crisis
Some of the well-known names in Asia include former Goldman
trader Morgan Sze, who started Azentus Capital, and former
Credit Suisse trader Charlie Chan who runs Splendid
Asia macro fund. Both launched their funds in 2011.
Lim and Bedwick will compete with Asia-based macro hedge
funds such as the $1.8 billion Fortress Asia Macro Fund run by
Adam Levinson and the $2.6 billion Dymon Asia Macro Fund managed
by former Citadel LLC trader Danny Yong in Singapore.
At his new firm, Lim will lead investments. Bedwick will run
the business, a change in role for the former Lehman Brothers
trader who outperformed rivals when he managed his own macro
hedge fund between 2009 and 2012.
Bedwick had launched his Sequence Fundamental Macro Fund,
earlier known as OGI Global Macro Fund, in October 2009 in Japan
with $15 million. It earned a 9 percent annual return, nearly
twice what his peers were making, and grew to manage as much as
But Bedwick, an American who has worked in Asia for more
than half his life, shut down his hedge fund in 2012 after the
fund failed to grow as investor shifted to larger hedge funds
Macro hedge funds focus on major economic trends and events
and bet anywhere they see value, including stocks, bonds,
currencies, commodities and derivatives markets.