According to Reuters, Sweden’s largest hedge fund manager, Brummer & Partners, has set up an office in Singapore and is launching a long-short fund focusing on Asian ex-Japan equities, sources familiar with the firm said.
The fund, called Karakoram (named after the large mountain range spanning the borders between India, Pakistan, and China) has an initial capital of $80 million, most of which is seed money from the parent firm, the sources said. The fund hopes to notch an annual net return of 15-20 percent.
Brummer is one of the more high profile hedge fund launches seen in Singapore over the last few months. The company declined comment on the launch of the fund and is a privately-owned hedge fund manager with about $5.2 billion in assets under management spread over several funds. Its portfolio managers typically have fairly large stakes in the funds they manage.
Karakoram is charging an annual management fee of 1 percent plus 20 percent of returns that exceed a pre-agreed target, which is lower than the traditional 2 and 20 percent charged by most funds in the past, according to company documents seen by Reuters.
