AsianInvesterAsianInvester

Ex-UBS team to launch new Asian fund of funds

Hong Kong-based Alphatraxx believes its focus on risk management, transparency and liquidity will appeal to institutional investors.

Alphatraxx, a new Hong Kong based Asian fund of hedge funds has been launched by Andrew Sinclair, formerly co-head of global hedge fund coverage at ABN AMRO. Prior to this Sinclair was an executive director and founding member of UBS prime brokerage's team in Asia and the new venture sees him reuniting with old buddies Janice Chan and Richard Norris.

Chan takes on the role of head of research at Alphatraxx, drawing on her experience as a senior investment officer at UBS Alternative Investments. Norris, who is Alphatraxx's head of operations, worked with Sinclair at UBS prime brokerage as well as in hedge fund coverage at ABN.

Joining the team as the head of risk management is Michael Schulz, previously global head of equity risk management at Lehman Brothers in New York

Sinclair, CEO of Alphatraxx, says the Asian fund of funds will be targeted at institutional investors, including pension funds and endowments and will respond to their requirements by combining investment banking grade risk management and operations with hedge fund asset management due diligence and analysis.

"Our strategy will be scaleable and will place strong emphasis on liquidity, risk management, operational integrity and transparency in our process and reporting," he says. Sinclair notes that the fund has already had significant interest from institutional investors in Europe and the US who are keen to gain exposure to the Asian hedge fund industry, but do not have the resources to conduct research and manager selection themselves.

"Our team possesses an intricate front to bank working knowledge of Asia's managers, the regional market fluctuations and the risks of various trading styles in the region," he adds.

Alphatraxx is currently undergoing the application process for its SFC license in Hong Kong, and Sinclair was unable to discuss further detail of the product at this stage.

The team are hoping to launch their fund during the fourth quarter of this year and will set up a London office in the next few months.