Quantedge hedge fund surges 32pc in 2011, eyes US$400m

HONG KONG, Jan 6 — Singapore-based hedge fund Quantedge Capital aims to double assets to US$400 million (RM1.256 billion) by end of 2012 after a 32 per cent gain in its global macro fund last year, a top executive said today.

The return came in a tough year for peers, with hedge funds down about 4 per cent and global macro funds down about 2 per cent in 2011, data from industry tracker Eurekahedge showed.

Macro hedge funds focus on major economic trends and events and bet anywhere they see value, including in stocks, bonds, currencies, commodities and derivatives markets.

“Most of the year’s returns came from our bond portfolio, offsetting the slight losses in our equities and commodities portfolio,” Leow Kah Shin, who co-founded Quantedge in 2006, said in an email to Reuters.

The hedge fund earned most of its money in April, July and October when it produced double-digit returns, according to a letter to investors seen by Reuters.

Quantedge Global Fund uses quantitative models to pick trades. Its return follows an 82 per cent gain in 2010, which has led to the fund increasing assets by more than 2-1/2 times to US$207 million at the end of December last year.

The assets have grown from about US$5 million in 2007.

Leow said Quantedge’s strategy could manage more than US$1 billion as it invested in liquid instruments and he did not plan to soft-close the fund at the moment.

“However, we are only accepting subscriptions from like-minded investors, i.e. those who are able to handle our volatility in exchange for really high long-term returns,” he said.

Leow, who worked in Bermuda as a reinsurance pricing actuary for Max Re Capital, set-up Quantedge with Chua Choong Tze, who worked as a consultant scientist for Applied Predictive Technologies in Virginia, United States. — Reuters



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