Amoeba Capital Partners Pte, run by the former head of Asian investments at Morgan Stanley’s asset- management unit, is returning money to investors in its stock hedge fund, citing “tough” industry conditions.
The Singapore-based firm plans to give clients their money by Dec. 31, said Managing Partner Ashutosh Sinha, 43, in an interview yesterday. The Amoeba Capital Asia Fund, which bets on rising and falling stocks in Asia outside Japan, returned 67 percent from its inception on July 10, 2006, through Aug. 31, Sinha said, compared with a 22 percent gain in the MSCI Asia Pacific ex-Japan Index over the same period.
“I’m just taking a sabbatical,” said Sinha, who worked at Morgan Stanley Investment Management for 11 years before founding Amoeba Capital in 2006. “The hedge fund industry has been tough in the last few years.”
The fund has shrunk to $135 million following client withdrawals during the global financial crisis, from a peak of $750 million, he said. Smaller managers are struggling to raise assets as investors are allocating money to larger funds, according to Eurekahedge Pte.
The largest 20 percent of funds oversee almost 80 percent of Asian hedge-fund assets, up from about 73 percent in 2005, the Singapore-based industry data provider said in September report.
The Singapore-based firm plans to give clients their money by Dec. 31, said Managing Partner Ashutosh Sinha, 43, in an interview yesterday. The Amoeba Capital Asia Fund, which bets on rising and falling stocks in Asia outside Japan, returned 67 percent from its inception on July 10, 2006, through Aug. 31, Sinha said, compared with a 22 percent gain in the MSCI Asia Pacific ex-Japan Index over the same period.
“I’m just taking a sabbatical,” said Sinha, who worked at Morgan Stanley Investment Management for 11 years before founding Amoeba Capital in 2006. “The hedge fund industry has been tough in the last few years.”
The fund has shrunk to $135 million following client withdrawals during the global financial crisis, from a peak of $750 million, he said. Smaller managers are struggling to raise assets as investors are allocating money to larger funds, according to Eurekahedge Pte.
The largest 20 percent of funds oversee almost 80 percent of Asian hedge-fund assets, up from about 73 percent in 2005, the Singapore-based industry data provider said in September report.
“It’s not easy for smaller firms,” Sinha said. “All the money is going into the large firms.”
‘Volatile Years’
Amoeba Capital’s fund gained 5.1 percent through August this year, said Sinha, who has been a fund manager for 17 years. It outperformed the average hedge fund, which gained 1.7 percent in the first eight months of the year, according to Eurekahedge.
“We had a good performance because we’ve been through a lot of volatile years,” Sinha said. “Markets have been quite volatile.”
Investors include endowments, funds of funds and family offices, said Sinha.
Sinha, who has lived in Singapore since 1998, holds an electrical engineering degree from the Indian Institute of Technology in the northern Indian city of Kanpur, and an MBA from the Indian Institute of Management in Kolkata, according to his biography.
Sinha joins hedge-fund icon Stanley Druckenmiller, who said in August he will shut down Duquesne Capital Management LLC and retire from hedge-fund management after 30 years.
Druckenmiller, 57, said he was tired of the stress of managing money for others and frustrated by his failure in the past three years to match returns that had averaged 30 percent annually since 1986.
“A lot of people are trying to take a break in this very tough market environment,” Sinha said. “Maybe I’ll be back at some point after a break and see what we can do.”
To contact the reporter on this story: Netty Ismail in Singapore nismail3@bloomberg.net.
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
http://jodnet.blogspot.com
‘Volatile Years’
Amoeba Capital’s fund gained 5.1 percent through August this year, said Sinha, who has been a fund manager for 17 years. It outperformed the average hedge fund, which gained 1.7 percent in the first eight months of the year, according to Eurekahedge.
“We had a good performance because we’ve been through a lot of volatile years,” Sinha said. “Markets have been quite volatile.”
Investors include endowments, funds of funds and family offices, said Sinha.
Sinha, who has lived in Singapore since 1998, holds an electrical engineering degree from the Indian Institute of Technology in the northern Indian city of Kanpur, and an MBA from the Indian Institute of Management in Kolkata, according to his biography.
Sinha joins hedge-fund icon Stanley Druckenmiller, who said in August he will shut down Duquesne Capital Management LLC and retire from hedge-fund management after 30 years.
Druckenmiller, 57, said he was tired of the stress of managing money for others and frustrated by his failure in the past three years to match returns that had averaged 30 percent annually since 1986.
“A lot of people are trying to take a break in this very tough market environment,” Sinha said. “Maybe I’ll be back at some point after a break and see what we can do.”
To contact the reporter on this story: Netty Ismail in Singapore nismail3@bloomberg.net.
To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net
http://jodnet.blogspot.com
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