By Nishant Kumar
Feb 16 Morgan Stanley's former head
of fixed income for Asia-Pacific, Ranodeb Roy, is preparing to
launch a hedge fund that will focus on liquid Asian interest
rates, credit and foreign exchange, he told Reuters on Thursday.
Singapore-based RV Capital Management that Roy is setting up
with Vickram Mangalgiri, a former adviser at Pacific Investment
Management Co., will start trading in April or May.
"It's a top-down driven strategy utilising dislocations that
come in the market," Roy, who was earlier based in Hong Kong,
said in a telephone interview from Singapore.
He said events such as Lehman Brothers collapse in 2008,
European debt crisis and Japanese tsunami last year caused
massive dislocations in Asian markets, some justified and some
"My idea is to pick up some of these assets which are not
justified," said Roy, who is joined by Rajesh Mahadevan, former
head of interest rate and foreign exchange structuring in South
Asia for BNP Paribas, as head of trading strategy.
The launch comes in a tough capital-raising environment for
the industry, with regional hedge funds seeing outflows in each
of the last four months of last year, according to data from
industry tracker Eurekahedge.
Roy declined to disclose the startup capital for the hedge
fund but said it has the capacity to take in about $1 billion.
"I was just on the road for the last one month and it's too
early to tell about size," he said.
"We will start off small."
Roy, who departed from Merrill Lynch in 2007 after the bank
wrote down $8.4 billion in the third quarter of that year from
exposure to subprime mortgages and collateralised debt
obligations, joined Morgan Stanley in March 2008.