LONDON and HONG KONG, Jan. 30, 2013 /PRNewswire/ -- FRM Capital Advisors ("FCA"), the seeding division of FRM, Man Group plc's ("Man") fund of hedge fund division, has entered into a strategic relationship with a Japan focused hedge fund.
FCA will make a significant investment in a fund launched by Arena Capital Management Limited ("Arena"), a Hong Kong based investment advisor.
Arena, established in May 2012 by Toby Bartlett (CIO), manages a Japanese Long-Short Equity strategy focusing on domestic demand sectors, constructed with a factor neutral pair trading book. Joining Mr Bartlett at Arena are Greg McLaughlin (COO), Ayumu Kuroda (Head of Trading and Risk Systems) and Yukimi Oda (Research Analyst).
Patric de Gentile Williams, Head of Seeding at FRM said: "This deal reinforces the global nature of FCA as a seeding business and is the first investment we have made since FRM was acquired by Man last year. We view Asia, and specifically Japan, as an important focus in our manager research, where we have a local office and a significant investor base."Arena's focus is on the Japanese domestic demand sector and Toby has demonstrated experience in researching and investing in this space from his time at Highbridge, Citadel and Fidelity Investments Japan. We see this both as an opportunity to potentially generate alpha in what is traditionally a less researched market by hedge funds where we have seen greater inefficiencies that allow managers that do in depth analysis to seek an edge, and as an opportunity to attract assets from investors looking to allocate to pure Japanese Long-Short Equity funds. "In addition, the recent drop in the Yen and newly elected Prime Minister Abe's growth focused economic strategy has caused a noticeable rally in the domestic market that may spur meaningful investor interest.