HONG KONG Singapore-based hedge fund Quantedge Capital aims to double assets to $400 million (258 million pounds) by end of 2012 after a 32 percent gain in its global macro fund last year, a top executive said on Friday.
The return came in a tough year for peers, with hedge funds down about 4 percent and global macro funds down about 2 percent in 2011, data from industry tracker Eurekahedge showed.
Macro hedge funds focus on major economic trends and events and bet anywhere they see value, including in stocks, bonds, currencies, commodities and derivatives markets.
"Most of the year's returns came from our bond portfolio, offsetting the slight losses in our equities and commodities portfolio," Leow Kah Shin, who co-founded Quantedge in 2006, said in an email to Reuters.
The hedge fund earned most of its money in April, July and October when it produced double-digit returns, according to a letter to investors seen by Reuters.
Quantedge Global Fund uses quantitative models to pick trades. Its return follows an 82 percent gain in 2010, which has led to the fund increasing assets by more than 2-1/2 times to $207 million at the end of December last year.
The assets have grown from about $5 million in 2007.
Leow said Quantedge's strategy could manage more than $1 billion as it invested in liquid instruments and he did not plan to soft-close the fund at the moment.
"However, we are only accepting subscriptions from like-minded investors, i.e. those who are able to handle our volatility in exchange for really high long-term returns," he said.
Leow, who worked in Bermuda as a reinsurance pricing actuary for Max Re Capital, set-up Quantedge with Chua Choong Tze, who worked as a consultant scientist for Applied Predictive Technologies in Virginia, United States.
(Reporting by Nishant Kumar; Editing by Chris Lewis)