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Killing it like a hooker in Hong Kong

Fund info: Och-Ziff Asia

General

Och-Ziff (NYSE:OZM) is a traded hedge fund initially seeded by the heirs to the Ziff publishing fortune and founded by Dan Och, a protege of Robert Rubin and alum of the Goldman Sachs risk arbitrage desk. Och-Ziff Asia has been around for a while, primarily trading liquid instruments and equities in Hong Kong, before they expanded their distressed business in early 2008. It was a disastrous move, and the the Asia Master Fund was down 31% in 2008. They ended up firing the entire distressed and private equity and credit section, and hiring real estate guys.

OZ has offices in Beijing, Tokyo, Hong Kong and Bangalore. It hired real estate guys for HK,  Singapore, China and India.

Deals

China Healthcare Holdings (HKSE:673):  A provider of healthcare services in China. OZM only owns 2% of the convertible shares according to news. Have to investigate further.

Fisherman’s Wharf: Stanley Ho promoted casino in Macau. Greenfield project. ML arranged a USD400mm private convertible in 2006. Looks like the CB value has crashed. Chow is offering 50 cents on the dollar or less to buyback the debt. When is this thing going to IPO given that the Macau gaming market has generally crashed? TPG was also in there…

People

Zoltan Varga: partner, head of Asia-Pacific. based in HK

Punit Patel: HK, Analyst, Ex JPM, Ex NYU Stern. Capital structure arb

Stephen Yuen: HK, Analyst, Ex GS, Wesleyan University

Manoj Jain: HK, MD, Ex-CS, Cambridge

Raaj Shah: former partner, former co-head Asia Pacific, head of credit and distressed, based in HK, former head of European credit trading

Mary Schroeder: former distressed debt head, based in HK,  joined the firm at the beginning of 2008 from Asian Debt Management.  Got axed by the end of the year. Poor woman, talk about a bad move.

Oliver Wimmer: former employee, formerly of Lehman Brothers.

Deep Mishra: Indian real estate. fired at end of 2008

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Josh Katzin: Analyst, HK, ex Mckinsey, Fenway Partners, HBS

Kirti Ram Hariharan: Analyst in Bangalore office, National Law School of India University, Partner at Amarchand Mangaldas

Zain Fancy: new hire, former head of Morgan Stanley Real Estate Asia Pacific. Zain joined Morgan Stanley in 1996. Prior to joining MSRE in 1998, he worked in the Mergers & Acquisitions Department. Zain has spent five years in the U.S. business and the remainder in Asia. Zain received a BS from Georgetown University’s School of Foreign Service.

Roy Kwok: new hire from MS

Annan Madduri: new hire from MS

Bharat Khanna: new hire from MS

Entities

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April 1, 2009 Posted by | China, Hedge Fund, Hong Kong | , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

ADM Capital: What happened last year?

Asia Debt Management, one of the oldest Asian distressed debt funds, seems to have had a rather bad year last year. From what I can tell, the fund missed its 15% hurdle, and had a few senior people leave.  It seems like the top dogs stayed on, but the thirty somethings, the core of the fund business, seem to have evaporated.

Justin Ferrier ends up in Myo capital, Mary Schroeder joins Och Ziff. That leaves you with the just the 4 principals of the fund. I’m not sure which deals blew up on them, but they did some darn innovative work along the way, one of the first Indian restructurings led by a foreign party, and all sizes of stuff all over South East Asia.

Mary Schroeder

Mary Schroeder is a corporate recovery consultant with substantial experience implementing debt restructuring plans and performing forensic accounting of financially distressed companies in the U.S. and in Hong Kong. Prior to joining ADM, Mary worked for KPMG’s Corporate Turnaround Department for five years, where she was involved in the refinancing of a PRC oil refinery, liquidation of an U.S. auto parts manufacturer, and the asset sales program of a Hong Kong construction company. Prior to joining this group, she worked in KPMG’s Assurance Services Department as an auditor. Mary is a graduate of the University of Notre Dame, where she obtained double degrees in Business Administration and Chinese Studies.

Mr Christopher Botsford,

Co-founder and CEO, ADM Capital
Christopher Botsford is a co-founder of ADM Capital, CEO of ADM Capital and a member of ADM Capital’s Investment Committee. Before establishing ADM Capital, Chris ran the Asia-Pacific regional debt and derivatives operation for Republic National Bank of New York. In 1995, he was a founding board member of the Asian arm of the International Swaps and Derivatives Association, the self-governing body for the derivatives industry. Chris holds an MA and BA from Cambridge University.

Hong Kong-based hedge fund firm Myo Capital is gearing up to launch an Asian-focused fund that will focus on undervalued credit strategies.

The Myo Capital Master Fund is set to debut on April 1 with $50 million in assets under management, according to Asian Investor.  The new Asian-focused (ex-Japan) vehicle will have four sub-strategies including high-yield credit, distressed, special situations and event driven.

The new fund is being headed up by Justin Ferrier, a former director at hedge fund shop ADM Capital.

“For example, if we are looking at a distressed credit, our Thai or Indonesian analyst will provide local intelligence, while Alfred, our trader, provides the market pricing and can source the credit from a large number of participants,” Ferrier told Asian Investor.

Other principals in the fund include Geoff Lee, who previously worked with Ferrier at Peregrine Capital and will run the special situations portfolio for the new fund; and Alfred Miu, formerly with UBS’s global credit strategies group, who will run the high-yield portion of the fund. In all, there will be 12 members of the team.

The fund is targeting returns of 13-15% net, with a volatility of 7% and a Sharpe ratio of 1.5-2. To start, it will not use leverage, but add use up to 150% as time goes on. The fund has a target close of $500 million.

Merrill Lynch will serve as prime broker for the new Myo fund; Maples and Calder and Simmons & Simmons will serve as lawyers; and HSBC will be the administrator.

April 11, 2008 Posted by | Hedge Fund | , , , , | 2 Comments