Dymon Asia Capital, which started a hedge fund in 2008 with capital from Tudor Investment Corp., plans to grow its Asian macro fund by 40 % to $700m by the middle of the year before closing it to new cash again, Bloomberg reported.
The Singapore-based firm has increased assets to about $500m since January, when it re-opened its Dymon Asia Macro Fund to investors after it outperformed the industry, CEO Danny Yong told Bloomberg. The hedge fund had stopped taking in money from outside investors a year ago to cap assets at $320m, said Yong, who previously set up and ran Citadel’s Asia macro trading business.
“We will take in more capital if we produce the returns that investors expect of us,” said Yong, 39, who is also the fund’s CIO. “$500m tends to be the crossover point where pension funds and some of the larger global asset managers start looking at your funds.”
The Dymon Asia Macro Fund gained about 4% this year, after returning 15.2% in 2010 and 16.3 % in 2009, Yong said in an interview with Bloomberg. Asia-focused macro funds lost 1.1 % in the first two months of the year, after returning 1.9 % in 2010, according to Singapore-based Eurekahedge.
Dymon Asia, which spun off from Hong Kong-based Abax Global Capital Ltd. in 2009, will grow its fund further only if it returns 15 % a year, Yong said.
Fund of funds account for more than 50 % of Dymon Asia’s investors, and the rest comprise of sovereign wealth funds and other asset managers, Yong said. About 50 % of its investors are from Europe, he said.