Algebris Plans Hedge Funds Betting Emerging Markets

Algebris Investments LLP, a $1.4 billion global financial hedge fund, is starting a fund focusing on capital securities that regulators insist banks must issue.

The London-based firm plans to start Algebris Coco Credit Fund in January to trade contingent convertible bonds, or CoCos, that regulators have earmarked as a vital part of bank buffers against future losses, said Ivan Vatchkov, chief investment officer of Algebris’s Asian unit. It plans to cap the size of the fund at $1 billion, he said.

Asia Bets

The firm opened an office in Singapore because it wanted to be close to India, Indonesia, the Philippines, Vietnam and Thailand, said Vatchkov.

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