The Sparx Group, Asia’s largest hedge fund manager, announced today that it will launch its first global macro hedge fund, according to Bloomberg. According to Sparx’s President Shuihei Abe, the size of the fund and other details has yet to be decided. The move represents a departure for the Tokyo-based company which traditionally focused on equity-related investments, Abe’s area of expertise. Abe noted in an interview last week that the company had to expand the scope of its products offered after the struggles of the previous year.
Amidst a record industry drop of 11.5% last year, global macro hedge funds recorded a 3.9% return. In May, total assets in global macro hedge funds increased from $30.3 billion to $1.32 trillion, the first increase in 11 months. For Sparx, who recorded a $224 million full year loss in May, the launching of the new fund will be the beginning of a critical reorganization and recovery process. Additionally, Sparx hired two proprietary traders with overseas experience last year in an effort to diversify the company’s investment focuses along with starting a new Japan-focused hedge fund which began selling to individual investors today.
According to Bloomberg, Abe noted that macro strategies are still uncommon in Japan. But with hedge funds finally starting to show signs of recovery, an index tracking global macro funds rising 6.4% this May, and Abe’s marketing skills, the launching of the new fund may well be the fulfillment of founder and president Abe’s promise to reverse the 65% drop in Sparx’s assets since August, 2006. Subsequent to a record low in March, Sparx shares have gained 49%. |
