FRM Capital Advisors seeds Japan focused hedge fund
LONDON and HONG KONG, Jan. 30, 2013
LONDON and HONG KONG, Jan. 30,2013 /PRNewswire/ -- FRM Capital Advisors
("FCA"), the seeding division of FRM, Man Group plc's ("Man") fund of hedge
fund division, has entered into a strategic relationship with a Japan focused
FCA will make a significant investment in a fund launched by Arena Capital
Management Limited ("Arena"), a Hong Kong based investment advisor.
Arena, established in May 2012 by Toby Bartlett (CIO), manages a Japanese
Long-Short Equity strategy focusing on domestic demand sectors, constructed
with a factor neutral pair trading book. Joining Mr Bartlett at Arena are Greg
McLaughlin (COO), Ayumu Kuroda (Head of Trading and Risk Systems) and Yukimi
Oda (Research Analyst).
Patric de Gentile Williams, Head of Seeding at FRM said: "This deal reinforces
the global nature of FCA as a seeding business and is the first investment we
have made since FRM was acquired by Man last year. We view Asia, and
specifically Japan, as an important focus in our manager research, where we
have a local office and a significant investor base.
"Arena's focus is on the Japanese domestic demand sector and Toby has
demonstrated experience in researching and investing in this space from his
time at Highbridge, Citadel and Fidelity Investments Japan. We see this both
as an opportunity to potentially generate alpha in what is traditionally a
less researched market by hedge funds where we have seen greater
inefficiencies that allow managers that do in depth analysis to seek an edge,
and as an opportunity to attract assets from investors looking to allocate to
pure Japanese Long-Short Equity funds.
"In addition, the recent drop in the Yen and newly elected Prime Minister
Abe's growth focused economic strategy has caused a noticeable rally in the
domestic market that may spur meaningful investor interest.
"Toby has demonstrated his ability to run a successful portfolio within a
robust risk management framework and with FCA's support we believe he will be
able to build an alternative investment management business that benefits his
investors, his team and FCA's investors."
Toby Bartlett, CIO of Arena, said: "As a new hedge fund, this major investment
by FCA allows us to focus all our energies on operational excellence and
generating high quality returns for our investors.
"Our focused approach to fundamental research in Japanese equities, combined
with disciplined portfolio construction and risk management, allows us to
pursue our goal to have low correlation to markets and protect against
downside volatility whilst capitalizing on market opportunities for our
"This strategic relationship with FCA is a major endorsement of the investment
process and business principles of Arena."
Arena is the first seeding deal announced by FCA since FRM was acquired by Man
in July 2012 and combined with its multi-manager business to create the
largest independent European based fund of hedge funds group.
Notes to editors:
FRM is a top 10 global industry allocator to hedge funds by AUM, and the
largest independent European based FoHF managing commingled funds and advising
institutional clients^1. It has one of the industry's largest research and
investment teams -- located in London, New York, Pfaffikon (Switzerland) and
Tokyo -- who are supported by institutional quality infrastructure. The
business offers clients a wide range of multi-manager investment services
across the liquidity spectrum, from commingled FoHFs through managed accounts
(MACs) to risk management and manager seeding activities through FRM Capital
^1 Source: Man and Towers Watson Global Alternatives Survey, July 2012, based
on YE 2011 AUM.
Man is a world-leading alternative investment management business. It has
expertise in a wide range of liquid investment styles including managed
futures, equity, credit and convertibles, emerging markets, global macro and
multi-manager, combined with powerful product structuring, distribution and
client service capabilities. At 30 September 2012, Man managed US$ 60 billion.
The original business was founded in 1783. Today, Man Group plc is listed on
the London Stock Exchange and is a member of the FTSE 250 Index with a market
capitalisation of around £ 1.7 billion. Man is a signatory to the United
Nations Principles for Responsible Investment (PRI). Man also supports many
awards, charities and initiatives around the world, including sponsorship of
the Man Booker literary prizes. Further information can be found at
Arena Capital Management Limited (Arena):
Before founding Arena Capital, Toby Bartlett worked for Highbridge Capital
Management (Hong Kong) from 2009 to 2011 as a portfolio manager of Pan-Asian
equities focusing on the consumer related companies. Prior to this, he worked
at Citadel Investment Japan from 2007 to 2009 where he was also a portfolio
manager and ran a Japan-focused equity portfolio. He started his career as an
analyst at Fidelity Investments Japan and worked there from 2004 to 2007 where
he became a portfolio manager of the Japanese consumer space. Mr Bartlett has
a Bachelor of Commerce in International Finance and a Bachelor of Arts in
Asian Studies gained from Griffith University, Australia in 2001.
SOURCE FRM Capital Advisors
Contact: Man Group plc (UK), Laura Humble, +44 (0)207144 3266,
firstname.lastname@example.org; Benny Liu (Asia), +852 2230 7225, email@example.com; or
Evelyn Cheung (Asia), +852 2230 7248, firstname.lastname@example.org
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