Temasek Holdings, Singapore's sovereign wealth fund, will start a venture with Dymon Asia Capital (Singapore) to back new hedge fund managers and strategies as it becomes a minority stakeholder in the firm.
Temasek committed $500 million initially that will be managed by Dymon, a hedge fund manager based in Singapore, according to Dymon President Jay Luo.
Temasek spokesman Stephen Forshaw confirmed the partnership in an e-mailed statement. The statement didn't disclose the size of Temasek's stake while Mr. Luo didn't elaborate when asked by phone.
The partnership will allow Temasek to diversify its investment and returns through a local company, and enable Dymon, one of Asia's largest hedge funds, to add to its traditional business of running macro funds by providing non-investment services to help managers start their own pools.
The Temasek-Dymon venture's first investment will be in a global equity long/short hedge fund focused on the Asia-Pacific region and led by Carl Vine, a former SAC Capital Advisors portfolio manager, according to Mr. Luo. Mr. Vine plans in the third quarter to start the Port Meadow Fund with an initial fundraising limit of $500 million.
“We are very excited to establish this relationship with Temasek,” Mr. Luo said in the statement. “We share a long-term vision of working with the best managers and believe our proposition to managers and investors is unique.”
Dymon has more than $4 billion in assets under management. For its fiscal year ended March 31, Temasek's total portfolio was valued at S$215 billion (US$172 billion).