Sat, Feb 6, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Rogers I.A. gets $90m mandate from Japan institution, as Japan's pension funds become promising asset-raising target

Monday, July 05, 2010
Opalesque Industry Update – Rogers Investment Advisors announced in a letter received by Opalesque today, that advisory AuM, through its relationship with Wolver Hill Asset Management and Wolver Hill Advisors, will increase by approximately $90m on August 1st, bringing total firm assets under advisory to $130m. The $90m will be applied solely to dedicated Japan-only FoHFs investments, said the Tokyo-based hedge fund firm in a press release.

The $90m is a mandate from a Japanese foreign investment trust distributed by one of the largest Japanese financial institutions and is part of a closed-end fund ending in 2013, according to Bloomberg.

“This is a sign of on-going alpha opportunities in the Japanese hedge-fund space and a result of four years of hard work in building out our business,” said Ed Rogers, CIO of Rogers Investment Advisors. “We hope and expect to win more of these mandates going forward.”

Ed Rogers said at the end of last December that he saw a much brighter year for Japan and that the Euro was unsustainable (see Opalesque Exclusive here).

Wolver Hill Japan fund
The Wolver Hill Japan Multi-Strategy Fund is approximately +3.2% net of fees YTD through June, 2010 vs. Japan’s TOPIX index returns of -7.3% and S&P 500 -7.6%.

Comparatively, the Eurekahedge Japan Hedge Fund Index was down 0.58% (est.) in June and up 2.77% YTD. The index’s best months were March and April (3%+ each month).

Wolver Hill Japan has net returns of +17% since inception of Nov. 2006, vs. TOPIX returns of -46% and S&P 500 -21% over the same period.

In their latest fund commentary on 25 June, Wolver Hill Asset Management and Rogers Investment Advisors said that although Japanese stock markets started strongly thanks to the announcement by the People’s Bank of China to allow increased flexibility of the yuan/USD exchange rate, they closed weaker than the previous week due to concerns over the slowdown of the US economy following much weaker than expected home sales (both existing and new), and a stronger JPY.

Some of their underlying managers took a cautious stance by reducing gross/net positions. One manager hedged his portfolio by purchasing put options which cover several major indices.

Japan’s institutions increasing investments in alternatives
For hedge funds, Japan's institutional investors are a promising asset-raising target looming on the horizon, said US-based marketing firm FletcherBennet in March, an opinion which was mirrored by Blackstone's Stephen Schwarzmann (see Opalesque Exclusive here).

In the Opalesque Japan Roundtable in March 2010 (Source), we learned from the managers based in that country that it is indeed the case that hedge funds will find opportunities with this investor base. Some of the largest institutional investors in Japan are in the position where they have a real need to chase higher performance, and are expected to do so by increasing their market exposures through alternatives vehicles, including hedge funds.

"Quite simply, Japanese pension funds will not produce enough returns to meet their future liabilities with their current asset mix. This will indicate that they will have to make greater allocations to alternatives in the near future," said Rory Kennedy, COO for Rogers Investment Advisors during the roundtable.

Rodgers / Wolver Hill’s funds of hedge funds may have a mandate from a Japanese instition, but Japanese pensions are reportedly choosing to invest in single manager hedge funds over FoHFs these days: pension funds that plan to put money with single hedge fund managers toppled those that said they’d choose managers who invest clients’ cash in an array of hedge funds for the first time since 2005, a Daiwa Institute of Research report said in December. The majority will go to individual managers who beat benchmarks, not to FoHFs caught up in the industry’s poor returns. – Gravrand.


Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. How Einhorn survived a nightmare year[more]

    From Bloomberg.com: Even when a hedge fund has an awful year, which was the case for David Einhorn's Greenlight Capital, there are lessons to be learned. Many funds would have had a tough time surviving a year like Einhorn experienced in 2015, when all the stars seemed to align against him and Green

  2. Legal - Hedge fund founder wins early release in U.S. insider trading case, Gramercy seeking $1.3 billion from Peru over land-bond dispute[more]

    Hedge fund founder wins early release in U.S. insider trading case From Reuters/Streetinsider.com: Former hedge fund manager Doug Whitman on Tuesday won a reprieve from serving the remainder of his two-year sentence for insider trading after several judges expressed skepticism that his 2

  3. Investing - David Einhorn finds a winner in Michael Kors[more]

    From Thestreetinsider.com: Greenlight Capital hedge fund manger David Einhorn took his lumps in 2015. The fund lost over 20 percent on the year amid bets gone bad being long a plunging SunEdison and short a couple high-flying FANG stocks. However, today Einhorn is again showing his stock picking pro

  4. Investing - Avenue Capital's Marc Lasry: We like European bank loans, Comment: A bunch of hedge fund managers are chasing the 'dream of crushing a major structural problem'[more]

    Avenue Capital's Marc Lasry: We like European bank loans From CNBC.com: European banks are under immense pressure, but at least one prominent hedge fund has found what it thinks is a good opportunity in the wreckage. Marc Lasry, co-founder and chief executive of hedge fund Avenue Capital

  5. Computer-driven hedge funds make money during January’s selloff[more]

    Komfie Manalo, Opalesque Asia: Commodity trading advisers (CTAs) that use computer programs to guide how they trade, made millions of dollars during last month’s market selloff on the back of declining oil prices and global equities and big moves in currencies. Data provider