Asia’s Best-Performing Macro Hedge Fund Hits $1 Billion Mark

Aug. 19 (Bloomberg) -- Oppenheimer Funds' Jerry Webman and Citi Private Bank's David Bailin debate whether current stock market valuations are justified on "Street Smart." (Source: Bloomberg)

Quantedge Global Fund, Asia’s best-performing macro hedge fund, said it has increased its assets to more than $1 billion, joining the ranks of the region’s biggest funds.

Quantedge, which started with $3 million in October 2006, has increased its assets under management to $1.05 billion at the end of June, the fund’s Singapore-based management company Quantedge Capital Pte said yesterday in an e-mailed response to queries by Bloomberg News.

Quantedge has returned an annualized 33 percent since its inception, it said, by using its own statistical models to pick trades. That’s the best performance of all macro hedge funds that bet on economic trends based in Asia, according to Singapore-based data provider Eurekahedge Pte.

“They take higher risks than most of their competitors,” said Mohammad Hassan, an analyst at Eurekahedge. “They have been very successful in capturing the upside of the markets.”

Macro hedge funds seek to benefit from economic shifts or changes in fiscal or monetary policies by investing in bonds, currencies, stocks and commodities.

Less Volatility

While Quantedge returned 36 percent this year through July, the Eurekahedge Macro Hedge Fund Index added 0.5 percent in the period, as loose monetary policies lowered market volatility, leaving less room for macro funds to make profits.

“The world’s major central banks have pushed liquidity into the markets over the past years, depressing yields and lowering volatility,” Hassan said. “It is difficult for macro hedge funds to bet on fundamentals in an environment with such active central bank intervention.”

Quantedge has 19 employees in Singapore and nine in New York, it said in the e-mail. Investors include high-net-worth individuals, family offices and funds of funds, it said.

The fund was founded by former reinsurance pricing actuary Leow Kah Shin and Chua Choong Tze, who had previously taught a course in portfolio management at Singapore Management University.

To contact the reporter on this story: Klaus Wille in Singapore at kwille@bloomberg.net

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net Tomoko Yamazaki

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