Tokyo-based Epic Investments has just launched its second hedge fund. The Wisdom of Japan Fund has launched with ¥1 billion under management and a target size of $400-$500 million.
The strategy of the new fund is Japan equity market neutral, and it has an 8% target annual return on 5% volatility.
Fees for the fund are a management fee of 1.5% and a performance fee of 20%. Typical gross exposure is 220% and net exposure will be zero. Within individual sectors, net exposure will be kept with an aggregate band of +/- 3%.
Managing the fund by using a mix of quant models and fundamental analysis is Tadashi Mukai, who used to be the portfolio manager of the UMJ Neutro Fund at United Managers Japan.
Epic Investments was founded in 2005 by a group of former Nikko Securities executives, and the CEO is Hidematsu Take. They subsequently launched the Prowess of Japan Fund, which was up 17% in 2008 and was one of the country's best performing hedge funds.
Service providers are Credit Suisse as prime broker and Daiwa Europe as fund administrator. The fund lawyers are Maple and Calder.