Kim, Former Tiger Asia Managing Director, Plans New Hedge Fund
Hugh Kim, a former managing director of Tiger Asia Management LLC, is planning to start a hedge fund in the third quarter to invest in domestic demand industries in Greater China, Japan and South Korea.
Greyson Capital Management LLC’s first fund will start with $35 million contributed by Kim, its managing partner, and Alignvest Capital Partners, said a document distributed to potential investors and seen by Bloomberg. The New York-based fund is also trying to attract other investors, which may include Tiger Asia founder Bill Hwang. Kim declined to comment.
Kim, 37, is among managers and senior analysts leaving the so-called Tiger Cubs, a group that received backing from Julian Robertson or worked at Tiger Management LLC. Peter Boodell, a former partner at Eastern Advisors, another Asia-focused Tiger Cub, started his own hedge fund Boodell & Co. in March, said another document seen by Bloomberg.
Greyson Asia Fund, which bets on rising and falling stocks, will invest in large and medium-sized companies by market value in industries including property, construction, industrials, consumer, internet, media and financial companies, the document to investors said. It will pick stocks using fundamental analyses, it added.
Under Scrutiny
Hong Kong’s Securities and Futures Commission is seeking a court injunction to ban Tiger Asia from trading all Hong Kong- listed securities and derivatives. The regulator alleged that the hedge fund founded by Hwang in 2001 engaged in insider trading and market manipulation of shares of Bank of China Ltd. and China Construction Bank Corp. in 2008 and 2009.
The U.S. Securities and Exchange Commission issued a subpoena, requesting trading records and other documents, Tiger Asia told investors in an October document.
Kim, who worked for Tiger Asia for five years, left the company earlier this year, said the document. Four analysts left Tiger Asia in 2011, a person with knowledge of the matter told Bloomberg this month.
Tiger Asia’s fund lost 16 percent this year, hurt by bets against Chinese stocks, said the person. Assets fell to $1.3 billion by April from $3 billion at the end of September, the person added.
Kim worked at Fenway Partners for six years before leaving as a vice president to join Tiger Asia. He began his financial career as a business analyst with consulting firm McKinsey & Co.
Alignvest, led by Reza Satchu, a former general partner at private equity firm Fenway Partners LLC, will receive a share of Greyson’s fee revenue in exchange for being a so-called “seeder” of the fund.
Robertson founded his New York-based firm in 1980 and built it into one of the world’s largest hedge-fund managers before returning clients money in 2000.
To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net.
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
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