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Alternative Market Briefing

Singapore-based credit hedge fund shuts down to convert in multi-asset family office

Wednesday, October 12, 2016

Komfie Manalo, Opalesque Asia:

Singapore-based asset manager Saka Capital is shutting down its SakaCapital Liquid Credit Fund and will return investors’ money as record low interest rates dampened returns, chief executive officer Assan Din told Bloomberg.

Din said, "In a zero-rate environment it is difficult to generate sensible returns in a liquid long-short credit fund. Expected returns going forward are expected to be 5 percent or lower and as such we decided to give back capital to our investors."

The credit hedge fund has stopped trading in July this year. SakaCapital’s assets reached $350m at its peak in 2012. Din said the hedge fund would be converted into a multi-asset family office, focusing on real estate, equities, debt, and currencies. It also plans to invest money for the management team and people close to them, he said.

Din added, "Because of the low interest-rate environment, high valuations across all asset classes and lack of liquidity in the market we believe the return profile of the hedge fund industry will be lower over the coming years. Pressure on fees is going to continue and assets are unlikely to grow."

Hedge funds closures on the rise

Several Asia-focused hedge funds have also shut down recently. Paul Tudor Jones’ Tudor Investment ......................

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