* Orvent closes $130 mln event-driven fund
* Swedish seed capital investor pulled out
* Fund was started by Scott Collison, former Millennium
* Hedge funds under pressure after tough 2011
(Filing nowAdds detail, background)
By Nishant Kumar
HONG KONG, May 23 Singapore-based Orvent Asset
Management has shut its $130 million event-driven hedge fund
after its Swedish seed capital investor pulled out at the end of
April, two sources with direct knowledge of the matter said.
Stockholm-based Brummer & Partners, one of Europe's largest
hedge funds, with about $14 billion under management, backed
Scott Collison, a former portfolio manager at Millennium
Management in Singapore, in starting the fund early in 2011.
The closure, which ends all investments into Asia-based
hedge funds by Brummer & Partners, is the latest in a growing
list of hedge funds to shut shop in the region following a tough
2011 when the Eurekahedge Asia index dropped 8.2 percent.
The Orvent fund lost 7.3 percent last year and was down a
further 3.6 percent by the end of April in 2012, according to a
fund information document from Brummer & Partners.
By comparison event-driven hedge funds as measured by the
Eurekahedge index were up about 1 percent in 2011 and 8.6
percent in the first four months of this year.
Collison and Brummer spokesman Jacob Lannero declined to
Orvent joins another Asia-focused hedge fund seeded by
Brummer, in mid-2009, in closing. The Karakoram fund shut after
the Swedish firm pulled out in December 2010 following a 15.4
percent loss in the fund that year.
Collison, the chief investment officer of Orvent, managed
the fund with four colleagues, with additional staff from
Brummer providing operational support.
More than 140 Asia-focused hedge funds shut down last year,
according to Eurekahedge.
(Reporting by Nishant Kumar; Editing by Joseph Radford)