Canning Park Capital, founded by former Gartmore Group and GLS Capital UK managers, plans to start a hedge fund that will trade the equities of large-capitalization companies in Asia.
The Singapore-based firm will start the CCP Asian Opportunities Fund on Oct. 1, said David Thompson, its portfolio manager who previously managed Gartmore’s European and Asian hedge funds.
Asia offers higher returns as correlations between markets are low relative to other regions, as shown by Indonesian stocks outperforming China’s by 60% this year, Mr. Thompson said.
“One of the reasons why we like Asia is the country effect in the region is very significant,” he said in an interview Wednesday. “They’re a big driver of returns.”
Poor corporate governance, different monetary policies, listing requirements and regulations contribute to “structural inefficiencies” in Asia, he said.
The fund is also getting seed capital from an Asian pension fund, Mr. Thompson said, declining to provide details about the investor and size of the fund because of a non-disclosure agreement. The long-short fund, which bets on rising and falling stocks, will have a capacity of at least $300 million, he said.
Jason Rich, Canning Park’s chief investment officer, was a portfolio manager at GLS Capital, an emerging markets hedge fund firm, and subsequently Bennelong Asset Management, a multistrategy hedge fund firm.