Gottex teams up with Headland Strategic to target emerging hedge funds
08 October 2013
News, Asia, China
By Asia Asset Management
Gottex Fund Management Sarl, the investment subsidiary of global alternative asset management group Gottex Fund Management Holdings Limited (Gottex), has announced it is to partner with Headland Strategic Limited, a new joint venture set up with founding partners Michael Garrow (formerly of Blackstone) and Johannes Kaps (formerly of Goldman Sachs), to provide strategic capital and institutional guidance to best-in-class hedge fund managers in Asia.
Gottex, which has one of the largest and most experienced hedge fund teams in Asia with 21 employees and significant capital committed to Asian hedge funds, will provide infrastructure, risk analytics, research and institutional services as well as take an equity interest in the company. The founding partners of Headland will constitute a majority of Headland’s ownership. V-Nee Yeh, co-founder and honorary chairman of Value Partners, and other prominent investors in Asia will complete the owners’ circle and commit cornerstone capital to Headland.
Headland’s mandate is to partner selectively with top-tier investment teams to establish institutional quality hedge funds in Asia. It aims to provide meaningful long-term capital, strategic guidance on industry best practices, and value-added relationships to Asia’s new generation of independent hedge fund leaders. Headland anticipates the diversification of its partnerships to broadly reflect Asia’s hedge fund industry potential over the next ten years.
Mr. Garrow of Headland Strategic Limited said: “History shows that emerging hedge funds typically outperform their larger peers. There is a large pool of talented hedge fund managers in Asia where we see a notable supply and demand imbalance. We have a proprietary pipeline of highly compelling candidates with respected institutional pedigrees and impressive individual track records, who are looking to partner with Headland Strategic.”
Mr. Kaps, founder and CEO of the firm, added: “Our business is counter-cyclical, and well-suited to Asia’s hedge fund environment. We believe Gottex is the ideal partner to bring its institutional infrastructure and experience to Headland as well as their proven expertise in Asia. Together we will combine the talent and attractive economics of emerging hedge fund managers with the compliance, investment processes and client services of a large established platform.”
Max Gottschalk, CEO of Gottex Asia, said: “We continue to see enormous potential in Asia where there is superior opportunity to generate alpha and where allocations to hedge funds remain underweight. Our partnership with Headland represents a further step in our strategy to position Gottex to take advantage of the exciting opportunities in this region and expand our hedge fund solutions offering to our global client base.”
Mr. Yeh, who is advisory board chairman of Headland Strategic Limited, concluded: “Headland represents the core elements of backing successful asset managers: independence to partner with the best talent, and commitment for the long-term, with a strong local presence for on-the-ground intelligence and support. Headland’s institutional focus is much needed in Asia – bringing the region’s top managers to the fiduciary world with industry best practices and a very significant capital base.”
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