A hedge fund operation called Wessex Asset Management is to be set up by Peter Chesterfield and Tim W...
He was the manager for Abbey Asian Pacific Trust, Abbey's Asian ex Japan pension funds, life funds and pooled pension funds. Tim Weir also worked on Abbey's Asian desk.
Both are in the process of leaving Abbey Life.
The plan is that in the New Year, Wessex Asset Management will launch an Asian ex Japan hedge fund which, in Chesterfield's words, "will be a long fund with some opportunistic shorts". At present the two men are setting up the operation and choosing administrators, lawyers and prime brokers (Morgan Stanley).
The fund will invest in equities and bonds in Asia, including Australia and New Zealand. Peter Chesterfield believes that there will be increasing number of opportunities in the Asia debt markets as fixed income funding grows in importance. He expects at times to arbitrage between equities, fixed income, convertibles and warrants.
The fund will have approximately 50 positions. Each long position is limited to 10% of the portfolio while for shorts the limit is set at 5%. Index shorts will not exceed 25% of the fund. For 80% of the holdings, the size of the position should not exceed five days' volume.
There will be a 1.5% management fee and 20% incentive fee, with a minimum investment of $500,000.
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