Sail launches new fund of funds
The Sail Asia Focus Fund has a target size of $300 million and will adopt a more opportunistic angle than the existing Sail Pacific Explorer fund.
Sail Advisors, an arm of Robert Miller's alternative investment firm Search Group and the largest fund of hedge funds platform in Asia, has launched a new pan-Asia product. The Sail Asia Focus Fund launched in January, seeded with $30 million and has a target of $300 million.
The new fund will be run by Eliza Lau, who will act as CIO, along with Denise Hu and Kamni Bharwani. It has a target return of Libor plus 10% and has projected volatility of 10%. Maximum leverage for the new fund is 1.5x and redemption is quarterly.
The Asia Focus Fund is more concentrated and has a higher return profile than the Sail Pacific Explorer fund which was launched in 2004. The new fund has 12-15 underlying hedge fund investments, while the Explorer fund is more diverse with 35 investments. Furthermore, Explorer tends not to participate in emerging hedge-fund managers, but the Asia Focus fund will have more flexibility to invest in early-stage funds.
ôI can see attractive opportunities in certain pockets within the Asian hedge-fund space, such as fixed income and credit arbitrage relative-value plays,ö says Lau, who serves as CEO and CIO of Sail Advisors. ôThe credit tightening gives openings for small- and mid-cap financing opportunities in China, India and Korea for credit strategies and private deal-focused hedge funds. Also with M&A activity on the rise in Asia, there are more opportunities for event-driven and special-situations funds.ö
HSBC is fund administrator and custodian. The fund lawyers are Deacons.
The new fund will be run by Eliza Lau, who will act as CIO, along with Denise Hu and Kamni Bharwani. It has a target return of Libor plus 10% and has projected volatility of 10%. Maximum leverage for the new fund is 1.5x and redemption is quarterly.
The Asia Focus Fund is more concentrated and has a higher return profile than the Sail Pacific Explorer fund which was launched in 2004. The new fund has 12-15 underlying hedge fund investments, while the Explorer fund is more diverse with 35 investments. Furthermore, Explorer tends not to participate in emerging hedge-fund managers, but the Asia Focus fund will have more flexibility to invest in early-stage funds.
ôI can see attractive opportunities in certain pockets within the Asian hedge-fund space, such as fixed income and credit arbitrage relative-value plays,ö says Lau, who serves as CEO and CIO of Sail Advisors. ôThe credit tightening gives openings for small- and mid-cap financing opportunities in China, India and Korea for credit strategies and private deal-focused hedge funds. Also with M&A activity on the rise in Asia, there are more opportunities for event-driven and special-situations funds.ö
HSBC is fund administrator and custodian. The fund lawyers are Deacons.
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