LONDON, Jan 27 (Reuters) - Former Dalton Investments portfolio manager Tony Hsu is preparing to launch his own hedge fund in March to bet on shares of entrepreneur-led Asian firms and against state-run companies, according to a source and the fund’s marketing material.
Hsu, who led a team that invested $2.5 billion for Dalton before leaving the firm last year to set-up OTS Capital in Hong Kong, will start trading with about $100 million, the source with direct knowledge of the matter said.
The fund has capacity to take in $1 billion.
The launch follows a 6 percent gain in Asian long/short equity hedge funds, as measured by tracker Eurekahedge, compared with a 2.5 percent decline in the MSCI Asia Pacific Index.
Hsu is joined by Yuya Shimizu, his Dalton colleague for six years, as senior fund manager and former Dalton analyst Ben Ting as a senior analyst. OTS has also hired former Deutsche Bank prime brokerage executive Andrew Sit as chief operating officer.
Hsu, a Wharton alumnus who also teaches value investing at the China European International Business School in Shanghai and National Taiwan University in Taipei, will invest a third of his fund’s assets each in China, Japan and the rest of Asia.
The Dalton Asia Fund that Hsu helped manage produced an annualised return of 20 percent between 2009 and 2013, according to marketing material seen by Reuters.
Dalton’s Sit declined to comment in an e-mail. (Reporting by Nishant Kumar; Editing by Carolyn Cohn)