Ranodeb Roy, Morgan Stanley’s former head of fixed income for Asia-Pacific, is raising as much as $1 billion for a hedge fund focused on interest rates, credit and foreign exchange.
RV Capital Management Pvt., which Roy is setting up with Vickram Mangalgiri, a former adviser at Pacific Investment Management Co., will start trading in April or May and plans to manage $500 million to $1 billion once it’s fully funded, Roy said in an interview in Singapore yesterday. He declined to say when the target may be reached.
Asian hedge funds had net inflows of $6.6 billion last year, bringing total assets to $82.1 billion as the total number of funds increased 4 percent to 1,100, according to Chicago- based Hedge Fund Research Inc. Roy says Asian funds can generate gains against the backdrop of a “zero-interest-rate world” in developed economies.
“There is an opportunity for investors to get returns from liquid Asian fixed-income products if one has a ‘private equity’ type mindset, with a longer-term view,” Roy said. “Regular global dislocations often give amazing entry points for Asia, and by sticking to the most liquid of products, one can get decent returns.”
Roy and Mangalgiri hired Rajesh Mahadevan, previously head of interest rate and foreign exchange structuring in South Asia for BNP Paribas SA, as head of trading strategy, and will set up a research team in India, bringing total staff to as many as 10 in the first phase.
Roy recently returned from a trip to the U.S and Europe, where he marketed the fund to investors including family offices, funds-of-funds and endowments, he said, without giving details.