Start-up hedge fund AlphaTran eyes opportunities

By Laurence Fletcher

LONDON (Reuters) - Start-up hedge fund firm AlphaTran Capital said on Thursday it is launching a long-short equity fund because it believes current volatile markets present excellent opportunities.

The firm has been set up by Damien Tran, a former partner at activist hedge fund TCI (The Children's Investment fund), Christophe Beauvilain, previously a partner at hedge fund firm Phylon, and Christophe Puyo, formerly at Societe Generale Asset Management.

AlphaTran said the fund will aim for returns of 20 percent a year excluding the effects of borrowing.

"Current market volatility has created a lot of investment opportunities for funds such as AlphaTran and is an ideal environment for stockpickers," said Damien Tran in a note.

While volatile markets have hit returns from the hedge fund industry so far this year, some managers believe there are now excellent opportunities.

Beauvilain said the fund will focus on large-cap stocks and will typically be able to move between 40 percent net short and 40 percent net long.

Shorting means betting on a lower price for a security in the future.

The fund will start with $50 million (25 million pound) seed capital from Thames River Capital, and will be able to manage up to $3 billion over time, said Beauvilain.