Dymon Asia Capital (Singapore) Pte, the best-performing large hedge fund in Asia last year, hired Jay Luo, former head of SAC Capital Advisors LP’s Asia-Pacific operations, allowing Dymon’s founder to focus on investing.
Luo, 44, who headed the Asia office in Hong Kong for the $13 billion hedge fund run by Steven A. Cohen, will join Singapore-based Dymon as president and a partner in June, said Dymon founder Danny Yong. Luo will be based in Hong Kong, focusing on strengthening risk management and operations. The appointment is subject to approval from regulators, Yong said.
The hiring will allow Yong to focus on trading as his firm expanded assets under management to $2.85 billion in February, including $2.5 billion in its main macro fund. The macro fund in 2011 had a more than 20 percent return, the most in Asia among hedge funds with assets of more than $1 billion, according to data compiled by Bloomberg.
“Jay has impeccable track record in Asia, helping SAC build the Asia business,” said Will Tan, managing director at Singapore-based recruiting firm Principle Partners Pte. “The biggest plus for Dymon would be Jay’s track record in building a hedge-fund business.”
Dymon’s Asian macro fund started trading in August 2008 with $113 million of initial capital from Paul Tudor Jones’s Tudor Investment Corp., the Greenwich Connecticut-based hedge fund, as well as partners and employees, according to the firm. It started accepting money from outside investors in August 2009, after it separated from Abax Global Capital Ltd., the asset manager part-owned by Morgan Stanley.
Dymon Asia Macro Fund -- which seeks to profit from macroeconomic trends by wagering on bonds, currencies, stocks and commodities -- has lost about 2 percent this year, Yong said. A Eurekahedge Pte index that tracks macro funds in Asia gained 1 percent through March, after returning 0.6 percent in 2011.
Luo, who was at SAC for 10 years, had run SAC’s Asia- Pacific operations since 2007. Prior to that, he was a senior member of SAC’s risk-management team in the firm’s Stamford, Connecticut-based headquarters since joining in 2002.
“Jay’s risk-management experience is crucial in helping us to further refine and institutionalize our risk-management processes and controls, and continue to pursue our core focus of delivering performance through prudent monitoring and management of the investment portfolio and financial markets which we invest in,” said Yong in an interview in Singapore yesterday. “SAC is clearly one of the best hedge funds in the world with outstanding risk-management practices.”
Luo quit the SAC to pursue other opportunities, said three people with knowledge of his resignation last week, asking not to be identified because the information is private.
Luo, a Chinese native, graduated from Beijing University with a bachelor of science in physics in 1987 and then obtained a Ph.D at Pennsylvania State University in biophysics chemistry in 1996.
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