Polymer Capital Management Expands in Japan with Two New Hedge Funds

Polymer Capital Management is launching two Japan-focused hedge funds to capitalize on Japan's stock market demand. The firm aims to replicate its successful strategies and leverage local expertise, despite recent volatility. Japan's emergence from deflation draws global investors, prompting growth in hedge fund launches.

Polymer Capital Management, a leading Hong Kong-based hedge fund, is set to launch two Japan-focused funds this year, as per sources with knowledge of the development. This strategic move highlights a growing interest in Japan's stock market, the third largest globally, amid an increasing wave of fund launches in the country.

One of the upcoming funds will use an equity long/short strategy, managing $500 million through a team of 30 portfolio managers. This approach will largely replicate the current Japanese investments under the flagship Polymer Asia Fund, according to insiders. Additionally, investment expert Daisuke Nakayama will lead a second long-only equity fund, after achieving over 20% returns since joining Polymer.

Despite market fluctuations and international trade tensions, Japan remains a hotspot for hedge fund investments, driven by its recovery from deflation and corporate reforms. With notable backing from global investors, Polymer is doubling its efforts in the region, amidst a projected surge in new fund launches, according to industry reports.

(With inputs from agencies.)