More CTA hedge fund launches forecast for Asia

More launches of commodities trading advisor (CTA) and systematic trading hedge funds are in the pipeline as Asia’s hedge fund universe expands in scope, according to Rebekah Pang, head of Asia capital introduction and prime brokerage for Newedge Group.

“We’ve been lucky in that the diversity of strategies in Asia has increased, typically moving away from the fundamental long/short equity funds into CTA, macro and volatility,” which are the strategies in which Newedge’s prime brokerage specialises, Pang notes.

Newedge will continue to focus on its niche specialisations, while broadening its services to other strategies, including equity and foreign exchange.

Singapore-based Pang, who has been with Newedge since 2008, recently took over the role of regional cap-intro head following the departure of Kirby Daley, who is understood to be joining a family office.

Last month, Newedge added Kenji Yamauchi to its cap-intro team in Hong Kong. He focuses on capital-raising efforts in Japan. His focus will primarily be Japanese investors. It coincides with the recent appointment of Alastair Sclater, a Singapore prime brokerage veteran, as Newedge's regional head of prime brokerage origination and structuring.

Pang says there are no plans at the moment to expand the team further, which includes in its Hong Kong cap-intro team Bing Liu, who focuses on mainland China. There is an increasing interest among Chinese investors in Newedge’s niche strategies, but it is yet to be matched by allocations, says Pang, who expects investment levels to pick up gradually.

Newedge is planning a roll-out in Asia of its Ultraedge electronic execution platform, although a timetable has not been set. The high-frequency trading platform, which was launched in Europe earlier this year, is part of Newedge’s prime brokerage unit and provides fund manager clients with a range of multi-asset trading services, including pre-trade risk management.