Sparx Group, a Tokyo-based hedge-fund manager, is chalking out plans to launch its first global macro fund, reported Bloomberg. The fund would be sold to institutional investors, as the firm wants to expand beyond equity related offerings.
Sparx Asset Management, a unit of Sparx Group, at present offers more than dozen funds, all of which invest predominantly in shares. Last year, it hired two proprietary traders with overseas work experience from a Japanese financial institution, to focus on a broader array of securities markets. Now, the launch of a macro fund would be a complete deviation from its conventional focus on equities.
According to Eurekahedge Pte, in 2008, global macro hedge funds returned 3.9%, while the industry posted an 11.5% slump in its worst year on record. Shuhei Abe, President of Sparx, has vowed to return the company to profit, after it reported a $244 million loss in May this year.
Mr. Abe said: “It’s going to be a new territory for Sparx. We’ve been dependent on my past experiences in the equities market, but after the struggle we’ve gone through last year, we’re starting to utilize other expertise to expand the scope of our products.”
Edwin Merner of Tokyo-based Atlantis Investment Research Corp, said: “I am sure Abe-san is doing all he can to raise new money, and given the change in the tone of the market I would expect him to have some success, given his marketing skills.”
