Commerzbank Securities is to double its exposure to Asia in the fund of hedge funds advised by Phili...
Commerzbank Securities is to double its exposure to Asia in the fund of hedge funds advised by Philippe Bonnefoy.
The group aims to double the amount of money it has invested in Asia, which is currently around $100m, for a total allocation of 5% to 10%. This month, Bonnefoy added two new Asian hedge fund managers to the fund of funds and is looking to invest with around 10 more hedge fund managers.
He plans to make initial allocations of $5m to $15m and then, depending on performance and developments, increase these allocations to $15m to $40m.
Bonnefoy is sub-adviser to Commmerzbank managing its three fund of hedge funds and the Cayman Islands-domiciled Cedar Fund. He is the head of Cedar Partners and the chief executive officer of Bahamas-based investment advisory company Comas Management.
Bonnefoy said: "Asia is an inefficiently priced market and we see an opportunity to make money. Asia used to be a long/short equity place to shop but the region is now offering more complex strategies like credit and capital structure arbitrage. The hedge funds are becoming more investible in terms of size and risk controls.
"When an institution has more than a billion to invest it can't place one and two million with individual funds and it also can't account for 10% to 20% of a fund's total assets. Bonnefoy and Commerzbank manage around $2bn in hedge fund assets.
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