Sail Advisors, an arm of Robert Miller's alternative investment firm Search Group and the largest fund of hedge funds platform in Asia, has launched a new pan-Asia product. The Sail Asia Focus Fund launched in January, seeded with $30 million and has a target of $300 million.

The new fund will be run by Eliza Lau, who will act as CIO, along with Denise Hu and Kamni Bharwani. It has a target return of Libor plus 10% and has projected volatility of 10%. Maximum leverage for the new fund is 1.5x and redemption is quarterly.

The Asia Focus Fund is more concentrated and has a higher return profile than the Sail Pacific Explorer fund which was launched in 2004. The new fund has 12-15 underlying hedge fund investments, while the Explorer fund is more diverse with 35 investments. Furthermore, Explorer tends not to participate in emerging hedge-fund managers, but the Asia Focus fund will have more flexibility to invest in early-stage funds.

ôI can see attractive opportunities in certain pockets within the Asian hedge-fund space, such as fixed income and credit arbitrage relative-value plays,ö says Lau, who serves as CEO and CIO of Sail Advisors. ôThe credit tightening gives openings for small- and mid-cap financing opportunities in China, India and Korea for credit strategies and private deal-focused hedge funds. Also with M&A activity on the rise in Asia, there are more opportunities for event-driven and special-situations funds.ö

HSBC is fund administrator and custodian. The fund lawyers are Deacons.