U.S. hedge fund North Rock Capital LLC is expanding into Singapore a year after setting up its first Asia office in Hong Kong, executives said, as it looks to boost its presence in the region and attract top talent.
The firm, which manages about $5 billion in assets, has filed an application with the Monetary Authority of Singapore (MAS) for a Capital Markets Services License for fund management in the city-state.
The equity-focused multi-manager platform has grown its Asia team rapidly to about 30 staff over the past year, with portfolio manager numbers tripling to six.
Singapore has been in fierce competition with Hong Kong to be considered Asia’s premier financial centre, with both cities keen to lure global asset managers.
Simon Chow, managing director and head of Asian research at North Rock, said adding a Singapore office allowed it to give portfolio managers more flexibility in the highly competitive, talent-driven industry.
“Hong Kong and Singapore, it makes us more attractive because we can now offer people the option of both,” he said in an interview.
In October, North Rock hired Sayan Ghosh, a former senior portfolio manager at Millennium Capital Management, as a founding member of its Singapore team. Ghosh joined as head of Asian investments and his team will start trading when the license is approved by the MAS.
While some Asian funds have been squeezed by capital outflows amid higher interest rates and China’s lacklustre stock market, larger global hedge funds are seizing the opportunity to gain market share and strengthen their teams.
Citadel, for example, has tripled its staff in Asia to 200 over the last four years.
During an interview in Hong Kong, Kelly Perkins, North Rock’s Florida-based chief investment officer, highlighted the strategic importance of Asia for the hedge fund’s profit and business growth, expecting to “patiently grow exposure in the region”.
Since October, North Rock’s combined number of licensed representatives and responsible officers with the Hong Kong’s Securities and Futures Commission has doubled to 17 people.
The new hires include professionals from Rockhampton Management and Torq Capital Management, which partially or fully closed funds recently, as well as from investment banks and rivals.
Reuters