Highbridge Capital Management is preparing to roll out an Asia-focused multi-strategy fund, which many in the market see as effectively a re-launch of the Asia Opportunity Fund run by the firm’s former star manager, Carl Huttenlocher.
Huttenlocher left the firm in 2011 to start his own multi-strategy hedge fund vehicle called Myriad Opportunities Master Fund, which is understood to have performed well this year – delivering a 12% YTD return to the end of July.
The new Highbridge Asia Fund will be managed by Arjun Menon, who began heading up the US-based firm’s Asian operations in 2011 following Huttenlocher’s departure.
The new strategy is understood to have been started in April with around $25 million of principal capital, with the aim of now scaling it up to several hundred million dollars.
Menon, who is well regarded in Asian investment circles, will operate across multiple asset classes through the new fund with a strategy that is understood to be similar to that run by Huttenlocher while he was with the JP Morgan-owned firm.
While the $1.4 billion Highbridge Asia Opportunity Fund saw significant redemptions and was reported to have been wound down following Huttenlocher’s departure, Menon and his team in Hong Kong have continued to manage the Asian component of the firm’s flagship Highbridge Multi-Strategy Fund.
Sources say that the team has done very well in recent years managing this portfolio, which has evolved into a strategy that places more emphasis on high-yield credit, convertible bonds and volatility trading in its regional investments.
Former Goldman Sachs salesman Anthony Berger joined Menon's team in August last year. Berger had also previously worked at JPMorgan, running Asia convertible bond sales. Highbridge declined to comment on the planned launch.
Highbridge recently appointed New York-based Scott Kapnick as its CEO. Kapnick, a former Goldman Sachs executive, joined the firm in 2007 to run Highbridge Principal Strategies, the firm’s global credit and private investment platform, and has successfully grown the assets under management in that business to over $14 billion.