ZAN Partners, a London-based wealth management firm, is opening its Japan long/short hedge fund to outside investors for the first time. The firm has been running the strategy since November 2005 with money from existing high-net-worth and family office clients, said John Aylott, fund manager. The ZAN Alpha Fund holds $14 million but has the potential to grow to $200-250 million, he added.

Aylott said he made a conscious decision to complete a one-year track record before opening the fund up to new investors. The firm has just accepted its first allocation from a fund of funds and is in discussions with several others; ZAN will also seek to attract more private investors. The fund's prime broker is Goldman Sachs and Aylott said the firm will likely use Goldman's capital introduction services in the future. There is no timeframe for growing assets. On Oct. 31, the fund was up 19.69% since inception and up 7.40% year-to-date. It returned an estimated 2.01% last month, said Aylott.