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31 Jul 2007

China Beats Japan As Asia's Top Hedge Fund Destination

According to Alpha Magazine's list of the region's biggest single-manager hedge funds, investors are rushing into China to capitalize on the country's soaring equity market, and Asia's native hedge funds are cashing in on the action.

Tokyo-based Sparx Group Co. topped the ranking for the second year in a row. Sparx, one of Japan's first money managers to get into hedged investing, now manages $6.7 billion. The next two firms, Hong Kong-based Value Partners and Singapore's Arisaig Partners, make their debut on the Asia Hedge Fund 25, managing $4.8 billion and $2.1 billion, respectively.

Despite their domination in the 2006 Asia 25 ranking, Japanese firms clearly take a back seat to China-based firms this year. A year ago four of the top ten firms were headquartered in Japan and accounted for one-third of the total assets managed by the Asia 25. his year, weakened by poor Japanese equities performance, only two of the top ten firms are Japanese.

China's equity market picks up where Japan's leaves off; the MSCI China index returned 78.7 percent in 2006, spurring the growth of China-focused funds under firms like Value Partners and Arisaig Partners.

The ten biggest firms in Alpha's exclusive Asia Hedge Fund 25 are:

Rank; Firm Name; Firm/Fund capital ($ millions)
1: Sparx Group Co.; (Tokyo, Japan); $6,651
2 Value Partners; (Central, Hong Kong); $4,772
3 Arisaig Partners; (Singapore); $2,100*
4 Penta Investment Advisors; (Central, Hong Kong); $1,910
5 Ward Ferry Mgmt; (Central, Hong Kong); $1,781
6 Lapp Capital; (Singapore); $1,400*
7 Tree Line Investment Mgmt.; (Central, Hong Kong); $1,300*
8 Artradis Fund Mgmt.; (Singapore); $1,220
9 Tantallon Capital; (Singapore); $1,092
10 Asuka Asset Mgmt.; (Tokyo, Japan); $1,034

Alex Akesson
Editor for HedgeCo.Net

Hedge Fund Barbarian Films Announces Alliance With Sand Dollar Capital

Hedge fund Barbarian Films LLC has announced an alliance with SandDollar Capital LLC, a private equity firm founded by The Hennessee Group principals Charles Gradante and E. Lee Hennessee.

SandDollar Capital's Charles Gradante said, “We have seen consistent interest from individual investors, funds and institutions for non-correlated alternative investments. We see film investment as a logical solution however for some time were unable to find the right business model that would offer engaging returns while effectively managing the downside risks typically associated with film investment”.

Lee Hennessee added, “Barbarian is the first film fund to capitalize on the inefficiencies in the current film investment landscape”. SandDollar Capital LLC structures financing from professional investors and institutional sources on behalf of Private Equity funds.

Barbarian has also recently formed ties with the Endeavor Agency and has announced its first film investments including: Powder Blue featuring Forrest Whitaker, Jessica Biel and Ray Liotta.

Barbarian Films is an investment fund founded by a trio of long time entertainment insiders that invests in structured independently produced film platforms. The hedge fund includes a unique investment methodology and slates of projects from best-in-breed producers and production companies which collectively have generated over $2 Billion (US) in combined box office returns.

“We have used our intimate relationships with consistently successful, award winning producers to create a unique fund which is the first of its kind to approach lower budget film slates in a significant way.” said Aaron Kaufman, Managing Member of Barbarian Films.

SandDollar Capital LLC’s alliance with Barbarian is a multi-year relationship, which will include Barbarian’s future funds and investment vehicles.