Dymon hard-closes macro hedge fund at $2.5 billion

Dymon Asia Macro Fund, managed out of Singapore by former Citadel executive Danny Yong, has hard-closed at $2.5 billion, ranking it as one of the region’s biggest indigenous hedge funds.

Launched in August 2008, the fund is understood to have generated returns of 20.1% in 2011 – a year in which macro funds lost an average of -2%, according to data provider Eurekahedge. The strategy is highly liquid and focuses on Asian and G-10 currencies, futures and interest rates.

Dymon’s macro fund is expected to be hard-closed for at least one year. “At this point in time, we’re focused on enhancing our investment team and infrastructure.” says a spokesman for Singapore-based Dymon Asia Capital, which also runs a Currency Value Fund.

Should the macro strategy continue to perform strongly, the firm “will contemplate re-opening the fund for investment”, the spokesman added.

An enhanced infrastructure would also make the fund even more attractive to institutional investors, although the firm declined to say how large the expanded capacity may be.

Dymon Asia Macro Fund had previously closed to investment in 2010 after capping assets at $320 million. After reopening in January last year, it quickly grew its assets to $1 billion by mid-year.

It is among a small pool of home-grown Asian hedge funds running more than $1 billion. Others include Hong Kong-managed Azentus ($1.9 billion) and Ortus Fund ($2.3 billion).

Prior to setting up Dymon Asia, Yong had established and managed the Asia macro trading business for global hedge fund group Citadel.