The following are initial investment criteria that buy-side investors typically use to immediately distinguish worthwhile small, new and start-up hedge funds. Hedge fund managers should be aware of these issues and ensure that they are able to satisfy them in order to maximize their ability to attract investment capital.

1. Length of common work experience of all core hedge fund team members. Cohesion of an established team – how well do they work together? How well do they divide their labour and (more…)

Okuno & Associates is a consulting and marketing firm specializing in alternative investments. It provides start-up and capital introduction services for global asset managers, including hedge funds, as well as sourcing Japanese transactions for private equity firms.

1. How is the hedge fund environment in Japan with respect to service providers and raising of capital?

While Japan has historically lacked infrastructure for start-up funds, this is beginning to change. Deregulation has eased licensing requirements, the popularity of the asset class has encouraged entrepreneurial fund managers and a growing number of service providers have arrived. Although Japan-focused hedge funds can be found in a wide variety of locations around the world, (more…)

Hedge Funds tend to be classified according to the markets they invest in or the strategies they employ. There is no official classification and the groupings tend to emerge once a large enough number of similar hedge funds are established.

LONG-ONLY LEVERAGED

A traditional equity fund structured like a hedge fund in that it will use leverage to maximize trading ability and will charge a performance fee for the manager.

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Independent Investment Partners ( IIP ) is a financial consultancy staffed by Japan market specialists assisting foreign financial businesses who do not have a presence in Japan develop business with their target client base in Japan. Clients are fund management firms, including hedge funds, (more…)

We are seeing a greater shift towards general acceptance and interest in Japanese investment in hedge funds. This is hardly surprising given the current market situation where the only investments generating serious absolute returns appear to be hedge funds.
The obvious attraction of hedge funds is however tempered by reservations that have only been reinforced by the recent Eifuku experience. Recent surveys (more…)