Japan has become the new frontier for the hedge fund industry’s most experienced talent scouts. Ivy Asset Management, the fund of hedge funds co-founded and led by Larry Simon and owned by Bank of New York, has just opened an office in Tokyo and put a crew on the ground to manage demand from Asian institutions and to research new managers across the region.
“We’re seeing tremendous interest from the client side, coupled with the growth and development of local hedge fund talent,” says Simon, 61. “We’ve been working in Asia since 1998, but this seemed like the right moment to branch out.”
“Timingwise, we realized that a critical mass had been reached,” adds Jeff Lindenbaum, head of Asia client development. “We plan to use the Tokyo office as a base to source managers from Japan, Hong Kong, Singapore and Australia.”
Ivy is no stranger to Japan. Currently, 20 percent of the firm’s $15 billion-plus in assets under management comes from Asian investors, largely Japanese insurance companies, pension plans and banks. But the challenge of working across time zones has taken a toll on the firm’s management. “Not all of our senior U.S.-based staff can operate late into the evening and be available at 11 or 12 o’clock,” says Simon.
Ivy’s Tokyo office and client services will be headed by Mitsuhiro Matsunaga, who joined the firm in November from Sumitomo Mitsui Banking Corp. Alan Chuang, who heads Ivy’s portfolio management, will keep close tabs on the investing side of the new business.
Although Ivy does not have any geographically focused funds, Simon admits that some clients have expressed an interest in them. “It’s not something we’ve done before, but it’s certainly a possibility,” he says.
