Man Group Plc, the biggest publicly traded hedge fund manager, is backing a new Japan-focused hedge fund started by Toby Bartlett, a former manager at Citadel LLC and Highbridge Capital Management LLC, according to a statement.
FRM Capital Advisors Ltd., under Man Group, will make an unspecified “significant investment” in the fund run by Hong Kong’s Arena Capital Management Ltd., the London-based provider of startup capital to hedge funds said in the e-mailed statement. The new fund bets on rising and falling Japanese stocks with a focus on domestic demand industries.
It will be FRM Capital Advisors’s first investment since its parent, London-based fund of hedge fund FRM Holdings Ltd., was acquired by Man in May, according to the statement. The size of the fund, which trades pairs of related stocks without taking a view on market direction, wasn’t disclosed.
The benchmark Nikkei 225 Stock Average has risen 11 straight weeks through Jan. 25 on anticipation that the new Prime Minister Shinzo Abe will introduce fiscal and monetary policies to stimulate economic growth, resulting in a weaker yen that will help boost exporters’ earnings.
“We see this both as an opportunity to be able to generate alpha in what is traditionally a less researched market by hedge funds where greater inefficiencies will allow managers that do in depth analysis to create an edge,” Patric de Gentile Williams, the head of seeding at FRM, said of the investment in the statement, referring to returns in excess of those of the benchmarks.
Arena’s Chief Investment Officer Bartlett was an Asian equities fund manager at Highbridge between 2009 and 2011, focusing on consumer-related companies, according to the statement. He worked for Citadel between 2007 and 2009 as a fund manager running Japan-focused stock investments. He set up Arena in May last year, it said.