The former Morgan Stanley head of corporate finance in Singapore is moving his hedge fund, FCM Absolute Return Fund, into active external marketing with plans to raise $400 million. The hedge fund will target private banks, distributors, fund of funds and prime-broking capital introductions and in anticipating capital restructuring and turnarounds. The hedge fund’s assets currently under management are worth $40 million, and with the new strategy Michael Lein plans to raise it up to $400 million. The fund targets absolute returns of 12-15% and volatility of 6-8%. The Sharpe ratio in 2005 was 1.3%.
Lien is the director heading these changes, a board member of UOB advertisement and currently the manager of the Lien family fortune. Before moving back to Singapore with Morgan Stanley Lien worked for US bank in Indonesia and started his investment banking career with Standard Chartered.
“Singapore has seen banking sector consolidation and now experiences far more competitive benchmarking of returns on capital,” Lein said in an interview with Asian Investor. “We envisage a similar trend evolving in Malaysia and Korea and, in due course, Taiwan.”
The fund management industry in Singapore is regulated by the Monetary Authority of Singapore, according to Asian Investor. However, FCM is exempt from holding a Capital Markets license and will be restricted to marketing the fund to qualified institutions and high net worth individuals.
No comments:
Post a Comment