Fri, Apr 18, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

FRM to issue $50m seed capital for San Francisco-based start-up Sensato Capital

Monday, October 25, 2010
Opalesque Industry Update – FRM Capital Advisors enters strategic relationship with Sensato Capital Management

FRM Capital Advisors (FCA), the hedge fund seeding division of Financial Risk Management (FRM), and Sensato Capital Management LLC (Sensato) have formed a strategic relationship which involves FCA investing up to US$50 million with Sensato.

Sensato was founded in May 2009 by the former co-heads of active equity strategies at Barclays Global Investors (BGI), Ernest Chow, PhD, CFA and Jonathan Howe, PhD. Together they led and managed BGI’s Asia active equity strategies, at the peak overseeing over $30 billion in client assets. During their ten years at BGI they developed a strong reputation in the investment community for innovation and delivery of impressive performance in long-short Japan and Asia ex-Japan strategies.

Sensato builds on the pair’s experience at BGI, adopting a fundamental, quantitative approach to investing in Asia Pacific equity markets that is designed to deliver compelling returns while avoiding concentration risk, macroeconomic risk and beta risk. FCA’s investment will provide Sensato with additional investment capital and the resources to further build out its 21st century investment platform.

Patric de Gentile-Williams, COO of FCA, stated: “Ernie and Jonathan’s impressive performance at BGI and experience building and managing a strong team are a testament to their calibre and talent. We feel their strategy is well suited for investors looking for returns from Asian markets through a rigorous, relative value approach designed to extract alpha from markets. They have already built an impressive team and research & systems infrastructure and we look forward to supporting their development going forward.”

Ernest Chow, Partner and Co-Founder of Sensato Capital stated: “We expect institutional investors to continue to increase their exposure to Asian markets. We believe that our flexible long-short approach can offer these investors a valuable source of alpha and having a significant investment from a highly regarded company such as FCA will help us attract interest from other investors and further develop our business.”

Jonathan Howe, Partner and Co-Founder of Sensato Capital stated: “We appreciate the sophistication of the FCA team and its rigor in evaluating Sensato Capital. They have a deep understanding of our distinctive capabilities. We look forward to a fruitful partnership.”

Sensato was established in May 2009 and began managing external capital in June 2010.

Sensato is the seventh strategic investment made by FCA since it began investing in 2008, and the second investment it has made in a manager focused on Asia.

(press release)


FRM Capital Advisors (FCA) is a division of Financial Risk Management (FRM), a global fund of hedge funds group managing approximately $9 billion worldwide for institutional and other sophisticated investors. FCA manages a seeding fund which makes strategic investments in emerging alternative investment managers. Additional information on FCA can be found at www.frmcapitaladvisors.com

Sensato Capital Management LLC is an SEC registered investment advisor headquartered in San Francisco. The firm manages Asia Pacific equity long short investment strategies, using sensible investment insights implemented systematically. Additional information on Sensato Capital can be found at www.sensatocapital.com


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. CTAs could face new challenges in a rising rates environment[more]

    Bailey McCann, Opalesque New York: CTAs have taken a beating performance wise lately, and asset flows reports show that investors aren't sticking around to see how the movie ends. Now, a new white paper from Roy Niederhoffer and Coen Weddepohl notes that as interest rates start to tick back u

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  4. Commodities – Popular value fund manager David Iben bets on Russia, gold,[more]

    From Reuters.com: With large bets on Russia and North American gold miners, one of the best performing stock pickers in the wake of the 2008 financial crisis is back with a new fund that reflects his deep aversion to following the crowd. In the Kopernik Global All-Cap Fund, David Iben is follo

  5. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an