January 2008 | Infovest
Adept Capital launching early-stage Asian fund of funds

By Alex Frew McMillan

Hong Kong-based start-up Adept Capital Partners Advisers launched at the start of the year a fund of funds that invests in early-stage hedge funds focusing on Asia.

The Adept Capital Partners Advisers Early Stage Asia Fund, which launched with $5 million in seed capital, plans on investing in up to 20 Asia-focused hedge funds that have been operating for three years or less and have total assets of less than $250 million.

The company says it has already identified 15 hedge funds that meet its investment criteria, out of an initial universe of 600 early-stage Asian hedge funds. The company says the fund will offer access to hedge funds that may not otherwise be open to investors.

Adept Capital chief investment officer Tony Smith is the portfolio manager. He previously managed an early-stage fund of funds at KE Absolute.

Smith is hoping to capture superior returns from hedge funds near the start of their life cycle, when the company believes they provide best performance.

Adept Capital is targeting 15-20% annual returns.

Smith is joined at Adept Capital Partners by CEO Eleni Istavridis.

“Asian markets are increasingly attractive for investors seeking absolute returns, with growing liquidity and sophistication. Yet they are still relatively immature and present good opportunities for absolute investment strategies,” Istavridis said in a release. “Our fund offers the best of both worlds, access to dynamic young managers and to Asia, the world’s most compelling growth story.”

The minimum investment is $100,000, and the company is setting the maximum capacity at $150 million. There is a 1.5% management fee and 15% performance fee. There is a one-year lock-up with a 2% penalty fee for early redemptions.

The [Administrator] is Citibank, with Maples & Calder as the law firm and Ernst & Young as the auditor. 

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