Billionaire Julian Robertson is seeding a new investment partnership that will focus on investing in Asian equities.
The new partnership, Tiger Pacific Capital LP, will be headed by Run Ye, Junji Takegami and Hoyon Hwang, according to a statement issued by Robertson’s firm, Tiger Management LLC. The three were senior members of Tiger Asia Management LLC, the hedge fund that was seeded by Robertson and started 2001, which founder Bill Hwang decided to wind down earlier this year.
Tiger Management, based in New York, didn’t disclose how much money Robertson and his firm would invest in the partnership. Fraser Seitel, a Tiger spokesman, declined to comment.
Robertson, 80, built Tiger Management into one of the world’s largest hedge funds by generating average annual returns of 32 percent, lifting his assets under management to $22 billion by mid-1998. After customer defections and losses cut Tiger’s assets to $6 billion two years later, Robertson decided to return money to clients and employ Tiger Management to invest his own fortune in hedge-fund managers, taking a share of profits in exchange.
Tiger Management has employed at least 40 portfolio managers and analysts who subsequently formed their own firms and became known as Tiger cubs. Those he seeded after 2000 with his own capital are known as “grand cubs.”
Tiger Asia, a New York-based firm owned by Bill Hwang, had about $1.2 billion under management as of August. That month, the firm said it would return outside capital to investors amid a three-year investigation by Hong Kong regulators.
Hong Kong’s Securities and Futures Commission alleged that Tiger Asia traded on inside information from bankers arranging placements of China Construction Bank Corp. and Bank of China Ltd. shares in 2008 and 2009, pocketing HK$38.5 million ($5 million).
Tiger Asia, which has no employees and physical presence in Hong Kong, denied the allegations in an Oct. 12, 2010 letter to investors. It had also received a subpoena from the U.S. Securities and Exchange Commission after the Hong Kong allegations, it told clients that month.
Ye, based in New York, declined to comment on his fund’s plan in an e-mail. He is among former managers and senior analysts leaving Tiger Cubs to start their own funds. Peter Boodell, a former partner at Eastern Advisors, another Asia-focused Tiger Cub, set up his own hedge fund Boodell & Co. in March 2011.
Hugh Kim, a former managing director of Tiger Asia, started New York-based Greyson Capital Management LLC last year. Greyson invests in large- and medium-sized companies in Greater China, Japan and South Korea, according to a document distributed to potential investors and seen by Bloomberg in May last year.
Adam Leitzes, who had helped assess investments for Tiger Management in Shanghai, started Hong Kong-based Karst Peak Capital Ltd., his own hedge fund betting on Asian stocks, in the first half, according to information posted on the Website of the city’s Securities and Futures Commission.