KGR Capital will launch the KGR Capital Asian Dynamic Absolute Return Fund on September 1st. This will be a multi-manager, multi-strategy fund of Asian hedge funds, and will initially have a portfolio of 27 hedge funds, including 11 strategies. Just over 40% of the fund's exposure will be to Japanese strategies, whilst the rest will be allocated to other parts of Asia, including Greater China, Korea and India. The manager is targeting returns of 15-20% over the cycle, and is expecting volatility to be about 7-10%.
KGR Capital launched its first specialist Asian fund of funds, the KGR Capital Asia Pacific Absolute Return Fund, in August 2003. Since then it has given initial investors a 9.9% annualized return, with a volatility of 4.12%. The Dynamic fund will have a number of overlapping managers, but will be targeting higher returns, and will accept a higher level of overall risk.
John Knox, one of the founders of KGR Capital, says, "The Asian Dynamic fund will enable us to offer those investors who have a higher appetite for risk, the ability to leverage off our established research and risk management expertise to benefit from the rapid growth of absolute return strategies in the vibrant economies of the Asia Pacific region".
The fund will be domiciled in the Cayman Islands, and will target professional and institutional investors. There will be euro- and sterling-denominated classes as well as the main dollar-denominated class. It will have monthly subscriptions and redemptions, and the minimum investment is $100,000.
KGR Capital is a specialist in Asian hedge funds, and is headquartered in Hong Kong. The company was formed in 2002 by John Knox, Nick George and Christopher Rampton, all of whom had worked together for many years in Asia in senior roles at Jardine Fleming and JPMorgan.