Fund of Hedge Fund Expands In Asia

by Carla Johnson, Investors Offshore.com

28 May 2008

Financial Risk Management (FRM), a global fund of hedge funds group with offices in Europe, Asia and North America, has announced plans to significantly expand its Asian operations through new offices in Hong Kong and Seoul, South Korea.

FRM, which manages USD15bn in assets for institutions and other sophisticated investors, including approximately 300 pension funds worldwide, first established a presence in Asia in 2000 with the opening of its Tokyo office. This now contains over 20 client service and investment professionals. It opened its office in Sydney in 2001.

FRM's Hong Kong office will open in June 2008, and will be comprised of both investment and client service staff. The Hong Kong office aims to strengthen FRM's research coverage of Asian hedge funds and provide enhanced client service for FRM's growing base of investors in the region.

FRM's Seoul office is planned to open in late 2008 to begin work on the process of obtaining licensing from the Korean regulatory authorities in 2009.

FRM's Seoul office will also provide client service to FRM's increasing number of Korean institutional clients which are currently served through FRM's Tokyo office.

Blaine Tomlinson, Founder and Group Chairman of FRM, explained that:

"The hedge fund industry is now global, and as a fund of hedge funds group we believe it is essential to maintain a research presence in all regions where compelling hedge fund investment opportunities exist."

"The Asian hedge fund industry is undergoing rapid growth in both size and quality, as structural changes in Asian markets are creating a rich opportunity set for investors."

"Our new Hong Kong office will complement our long-established hedge fund research presence in London, New York and Tokyo, and significantly strengthen our coverage of Asia. We anticipate increasing our allocations to Asian hedge funds, and our newly launched hedge fund seeding business, FRM Capital Advisors, is also seeking to invest in new managers in the region."

Paul Dunning, CEO of Financial Risk Management Limited, added:

"During the past decade, FRM has provided education and investment opportunities to hundreds of institutions looking to benefit from the absolute returns that hedge funds can provide. We are in the early stages of a global trend towards increased institutional investment in hedge funds, and we are making a significant investment in resources to serve more Asian institutions and major distribution partners as they increase their hedge fund allocations."

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