Morgan Sze plans to launch a global hedge fund that was invested 75 percent in Asia

Morgan Sze, global head of Goldman Sachs Group Inc. 's main strategies owned negotiating table, plans to launch a global hedge fund that was invested 75 percent in Asia, said two people briefed on the matter.

Hong Kong Azentus Capital Management Ltd., which is scheduled to begin operations in late March, has attracted investment from Goldman Sachs partners, he said, declining to be identified as the information is private. The company's most profitable Wall Street did not return with the money from your balance, they said. Eddie Naylor, a spokesman for Hong Kong for Goldman Sachs declined comment.

Banks like Goldman Sachs and JPMorgan Chase & Co. are moving to comply with the law Dodd-Frank-financial reform in the U.S. which forbids them to risk capital for betting on their own accounts. Azentus is expected to start investing with $ 1 billion to $ 1.5 billion, which is the beginning of the largest hedge fund since the financial crisis began, the Financial Times reported today, citing unidentified sellers of the fund.

"A hedge fund based in Asia capable of reaching a critical mass in a day is likely to attract institutional interest," said Frederick Ingham, head of Neuberger Berman LLC Group of Hong Kong investment in hedge funds in Asia- Pacific. "This natural interest is exacerbated when the release is a spin-out of an institution with a history of spawning some of the best known hedge fund groups in the world."

Leaving Goldman Sachs

Goldman Sachs, which makes about 10 percent of its income from proprietary trading, decided to dissolve the principal strategies group, two people with knowledge of the decision, said in September.

Sze Asian team is expected to leave Goldman Sachs before the new fund starts trading, the people said. The fund, led by 45-year-old investment manager Sze, began shipping in early November and met with large investors, even before that, they said. That did not rule out possible investment unit of Goldman Sachs Asset Management.

Azentus used investment strategies similar to strategies of Goldman Sachs, director, said the people. These include long-short equity, which bets on rising and falling stocks, lending and capital structure arbitrage, which seeks to exploit mispricing between different securities issued by the same company.

"Relatively rare"

"A director with the skill set to implement a wide range of hedge fund strategies, not only long-short equity, is still relatively rare in Asia and will appeal to those players looking to capture the opportunity of a combined Asia single investment, "Ingham said.

Capital funds of hedge accounting for 72 percent of the number of hedge funds focused on Asia and 66 percent of its assets under management in September, according to Chicago-based Hedge Fund Research Inc.

"Credit in Asia and the arbitration of the capital structure has historically been limited to a handful of Asian directors and branch offices in Asia in the global multi-strategy hedge funds," said Charles Stucke, senior managing director of Chicago-based Guggenheim Partners LLC. "The collapse of a number of these offices and desks in the crisis of 2008 created new business opportunities for companies by experienced investors."

About 25 percent of investments in companies Azentus be outside of Asia, which is expected to benefit from demand in the region or mergers and acquisitions, said the people.

Bottom-up research

Investments will be collected through a combination of bottom-up research and macroeconomic analysis, one of them said.

Sze will lead an investment team consisting of about 12 current employees of the strategies of Goldman Sachs, Asia director, said the people. Azentus hired Roger Denby-Jones, a former prime broker Goldman Sachs as its chief operating officer, people with direct knowledge.

Goldman Sachs Principal Strategies reached an estimated $ 11 billion of equity of the company in its heyday, the London-based Financial Times said. Sze was one of the highest paid traders in the world, earning as much as double the pay of Goldman Sachs, Lloyd Blankfein, chief executive, said.

Dinakar Singh, a former head of principal strategies group, co-founder of TPG-Axon, in 2004. Eric Mindich began in New York, Eton Park Capital Management LP for $ 3 million dollars with the ex-director of co-chief strategies of the same year Erland Karlsson.