KGR Capital Announces New Asia Dynamic Fund

by Carla Johnson, Investors Offshore.com

25 August 2005

KGR Capital has announced a September 1st launch for the KGR Capital Asian Dynamic Absolute Return Fund, a multi-manager, multi-strategy fund of Asian hedge funds that 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 the rapidly growing economies of 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, noted that: “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 EUR and GBP classes as well as the main USD class. It will have monthly subscriptions and redemptions, and the minimum investment is US$100,000.

Recommended