ID :
187528
Thu, 06/09/2011 - 14:49
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Woori Investment affiliate launches seeding fund

By Kim Young-gyo
HONG KONG, June 9 (Yonhap) -- A Singapore-based affiliate of South Korea's Woori Investment & Securities Co. will launch a seeding fund to support newly emerging hedge funds worldwide, company officials said Thursday.
Woori Absolute Partners, a hedge fund manager backed by one of the largest brokerage firms in South Korea, together with French alternative investment incubation specialist NewAlpha Asset Management, will launch a fund that will provide capital to start-up hedge funds.
In 2008, Woori Investment set up the hedge fund manager in a desire to develop its multi-strategy alternative investments business. Hedge fund are banned in South Korea.
"With a growing number of talented managers coupled with rising global interest in the region, the hedge fund seeding industry is positioned for strong growth," said Edward Moon, chief investment officer of Woori Absolute Partners.
"The distribution capabilities that ourselves and NewAlpha have throughout Asia and Europe is going to be a key differentiator for our partners and investors."
Meanwhile, the South Korean government is moving to allow hedge funds within this year. Currently, South Koreans are only allowed to put their money into hedge funds established in foreign countries.
A hedge fund is privately pooled money used by investors who seek massive investment returns through risky bets using a wide range of investment techniques, including short selling and leveraged buyouts.
The regulatory change is expected to allow a hedge fund to borrow up to 400 percent of its assets and to place bets on financial derivatives products.
ygkim@yna.co.kr

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