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* Long/short hedge fund Tybourne aims to raise $1 billion
* To invest globally but maintain an Asian bias
* Proposes "modified high water mark" for lower fees
By Nishant Kumar
HONG KONG, March 15 A highly anticipated
hedge fund from former Lone Pine and Goldman Sachs
executives will be launched in July and carry an innovative fee
structure, according to a document seen by Reuters.
Eashwar Krishnan, former Asia head of hedge fund firm Lone
Pine Capital, and Tanvir Ghani, former head of capital
introduction for Asia-Pacific at Goldman Sachs Group Inc
were aiming to raise $1 billion in the fund.
The launch, set for July 2, is one among four major
start-ups in the region that have attracted investor attention
this year, improving prospects for the struggling Asian hedge
fund industry as tried and tested fund managers and traders
expand investment options.
The duo are setting up long/short equities hedge fund
Tybourne Capital Management in Hong Kong and putting together a
team of at least 19 staff, the fund information document showed.
The fund will invest globally, but have an Asian bias. Its
main focus will be on consumer, financials, technology, media,
telecommunications and industrial sectors, the document showed.
An e-mail to Ghani did not elicit a reply.
Lone Pine will take a small ownership stake in the
management company and will fund part of Tybourne's start-up and
operating expenses, while the principals are the largest
investors in the hedge fund, the document showed.
Krishnan, who moved to Hong Kong in 2007 to set up and
manage Lone Pine's operations in Asia, was a senior analyst at
the Greenwich-based hedge fund for the past 11 years. He has
invested globally, with a particular emphasis on technology.
Krishnan, who also worked as an analyst at Goldman Sachs
between 1998 and 2000, has a degree in physics.
MODIFIED FEE STRUCTURE
Tybourne aims to attract 70 percent to 80 percent of the
assets for longer durations of three and five years to help it
take a longer-term investment view.
Investors will have to put in at least $5 million into the
hedge fund, five times more than the usual up to $1 million
required by most funds in Asia.
Tybourne will halve the performance fee in exchange of a
"modified high water mark", an innovative and uncommon
fee structure in Asia which allows hedge funds to charge
performance fees on gains even after periods of losses.
The discount will remain in effect even after the high water
mark is reached and until the fund recovers 250 percent of the
losses, the document showed.
High water mark refers to peak net asset values above which
hedge funds can charge performance fees.
Tybourne has picked Goldman Sachs and Credit Suisse Group AG
as prime brokers. Goldman Sachs is the fund's
Krishnan joins the likes of senior UBS Australia
trader Gerard Satur who is setting up MST Capital that aims to
garner up to A$500 million and employ the increasingly popular
Others such as Alp Ercil, a former partner and the head of
New York-based hedge fund Perry Capital's Asia operations, and
Aje Saigal, a veteran at sovereign wealth fund Government of
Singapore Investment Corp (GIC), are also launching
(Editing by Chris Lewis and Muralikumar Anantharaman)