Home / Market / Stock-market-news /  Samsung Asset Management plans global macro hedge fund

Hong Kong: Samsung Asset Management, the South Korean manager that oversees $1 billion in hedge fund assets, will start a global macro fund next quarter as it seeks to diversify outside of its home market.

The fund, yet to be named, will start with $20 million and seek to profit from broad trends in currency, stock, bond and commodity markets, Yoonho Heo, head of the firm’s hedge fund division, said in an interview in his office in the Jung-gu district in Seoul.

“We have had issues with liquidity in trading Korean stock markets as most of our equity hedge funds only invest in Korean stocks, so we have been preparing the macro fund for a long time," he said.

Samsung Asset Management’s decision to start the fund comes as global macro hedge funds have come under pressure from investors. Since 2014, 255 such strategies have closed, compared to 460 in the entire 2003 to 2013 period, according to data compiled by Eurekahedge Pte. London-based Omni Partners announced plans to shut down last month, while investors in Brevan Howard Asset Management’s macro fund asked to pull $1.4 billion from the strategy in April.

Samsung Asset Management was founded in 1998 as Samsung Life Investment Trust Management Co. and managed $168 billion as of 31 Dec, including three hedge fund strategies. In March, it started a fund of hedge funds with Chicago-based Mesirow Financial, Heo said. The Global Multi-Strategy Hedge Fund has $10 million in assets and invests in long-short equity, relative-value and event-driven strategies.

Heo will be the lead portfolio manager for the new macro fund, which will invest in developed and emerging markets. Bloomberg

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