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Ex-Soros Fund Management team to start new Asia hedge fund this year

BBR Staff Writer Published 21 April 2014

A former Soros Fund Management team is planning to set up a long/short equity hedge fund company in Hong Kong in the third quarter of 2014 with support from HS Group.

With an initial capital of at least $150m, including seed capital from HS Group, Pleiad Investment Advisors will primarily focus on investments in China and Japan. Pleiad has been co-founded by Kenneth Lee and Michael Yoshino.

The investment in Pleiad is the first seed capital investment of HS Group, founded by Michael Garrow, and Johannes Kaps, who previously worked at Blackstone Group, and Goldman Sachs Group, respectively, in 2013.

In addition, the deal represents one of the biggest ever seed capital investments in a hedge fund in Asia, where a typical seed investment is usually around $25m, reported Reuters.

HS Group chief investment officer Michael Garrow was quoted by Bloomberg as saying that Pleiad will employ more than six people, including two analysts, a chief operating officer and a chief financial officer, and can potentially manage $1.5bn to $2bn.

The fund will make long-term, concentrated investments in liquid companies, picking stocks using a combination of company fundamental analysis and industry research, Garrow added.

HS Group is supported by Swiss fund-of-hedge-funds manager Gottex Fund Management Holdings and V-Nee Yeh, co-founder of Value Partners.

Asian hedge fund start-ups on average raised more than $50m each in 2013, the biggest of which was by Asia Research & Capital Management, which raised $1.1bn, according to data from AsiaHedge.