June 15, 2011 / 7:55 AM / 8 years ago

UPDATE 2-Ex-DKR Fischer aims to raise up to $1 bln in hedge fund-source

* To open Oasis Investments to external investors in late summer

* Fund is global market neutral, multi-strategy, multi-asset

* Fund has returned annualised 100 pct in last 14 months (Adds details, background)

By Nishant Kumar

HONG KONG, June 15 (Reuters) - Seth Fischer, who once managed $3.3 billion for DKR Soundshore Oasis Fund, will open his multi-strategy hedge fund in late summer to external investors, aiming to raise up to $1 billion, a source with direct knowledge of the matter said.

The Oasis Investments Master Fund II will be a continuation of the strategy that Fischer and his team of 25 staff had been running internally and with internal capital for the last 14 months, the source said.

Veteran managers in Asia are coming out with their funds as capital-raising opportunities improve, lifting prospects of the nascent Asian hedge fund industry and expanding options for an increasing number of institutional investors aiming to raise exposure to the region for higher yield.

Former Goldman Sachs trader Morgan Sze launched his blockbuster $1 billion-plus hedge fund in April, while Principia Capital Advisors is set to come out with a $750 million hedge fund.

Oasis’s global market-neutral, multi-strategy, multi-asset fund with a heavy Asian bias had capacity for up to $1 billion, the source said.

“Many of the original DKR Soundshore investors will return to Seth,” the source added.

Oasis Investments had returned an annualised 100 percent in the last 14 months, said the source, who declined to be named as he was not authorised to speak to the media.

Fischer, who worked as an Asia-based portfolio manager at JPMorgan Chase & Co’s Highbridge Capital between 1995 and 2002, could not be reached for comment.

Seth was chief investment officer of DKR Soundshore Oasis Fund. Following its inception in February 2002, the fund rose to its peak asset of $3.3 billion in 2008.

The veteran fund manager has picked Goldman Sachs , Credit Suisse and Deutsche Bank (DBKGn.DE) as prime brokers and Omnium as fund administrator, the source said.

Interest in hedge funds has staged a comeback with the industry adding $93.9 billion in the first four months of the year, or about $28 billion more than the corresponding period last year, according to data from Singapore-based industry tracker Eurekahedge.

Asian hedge funds have witnessed 12 consecutive months of net positive asset flows after a recovery last year.

While hedge fund assets in Asia remain well below the peak level of $192 billion seen in December 2007, according to industry tracker AsiaHedge, select firms have attracted large inflows with many well-known hedge fund managers in the region looking to launch funds in the next 12 months.

Fortress Investment Group LLC’s former Hong Kong head Stanley Ku is setting up Complus Asset Management after getting a licence from the Securities and Futures Commission last month.

The growing list also includes Charlie Chan, former Credit Suisse Group AG proprietary trader, and Benjamin Fuchs, who earlier worked as a proprietary trader for the now bankrupt Lehman Brothers in Tokyo, according to media reports. (Editing by Chris Lewis and Vinu Pilakkott)

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