HFR Asset Management and Oria Capital have teamed up to launch a principle protected fund of funds that is meant to provide the stability of investing in the HFRX Global Index with the more aggressive return characteristics of Asian hedge funds.
The new Asian focused fund, named called the HFR Oria Asia Principal Protected Note, will be 50% invested in the Oria Asia Fund, which consists of 20 Asian based sub-funds covering 8 different hedge fund investment strategies and offering exposure to up to 14 countries in the region including China and Japan.
The other 50% will be invested in four HFR sub-indices with low correlation to the Oria Asia Fund and will be actively managed by HFR. Barclay’s Capital will provide an 8-year principle protection.
The fund will be distributed by Oria Capital and Barclays Capital in Asia and by HFR in Europe and will be offered to sophisticated institutional investors only. Investment in the fund will be available in US dollars. The fund will close on January 9th, 2006.
The Asia markets now account for over $80 billion of hedge fund assets with more than $25 billion flowing into hedge fund investments in the region in 2004 alone.
“With good funds in Asia closing to investment on average just 12-24 months after their launch, there is constant demand for exposure to and expertise within the region,” said John Godden, managing director of HFR Asset Management. “Teaming up with Oria Capital will enable HFR to offer its investors access to the very best of available investment opportunities in Asia.”