Ex-BGI equity managers get seed capital from FCA

14.10_HandshakeSensato Capital Management, a firmed created by the former co-heads of active equity at Barclays Global Investors, has formed a strategic alliance with FRM Capital Advisors (FCA), the hedge fund seeding division of Financial Risk Management which will see FCA investing up to $50m (€35.6m) with Sensato.

Sensato takes a fundamental, quantitative approach to investing in Asia Pacific equity markets which is designed to deliver positive returns while avoiding concentration risk, macroeconomic risk and beta risk. FCA’s investment will provide Sensato with additional investment capital and the resources to further build out its investment platform.

Patric de Gentile-Williams, COO of FCA, said: “We feel the strategy is well suited for investors looking for returns from Asian markets through a rigorous, relative value approach designed to extract alpha from markets. They [the founders of Sensato] have already built an impressive team and research and systems infrastructure and we look forward to supporting their development going forward.”

Sensato was founded by Ernest Chow and Jonathan Howe, who together led and managed BGI’s Asia active equity strategies, overseeing over $30bn in client assets at their peak. During their time at BGI, they developed a good reputation in the investment community for innovation and delivery of strong performance in long-short Japan and Asia ex-Japan strategies.

Chow, partner and Co-Founder of Sensato Capital said: “We expect institutional investors to continue to increase their exposure to Asian markets. We believe that our flexible long-short approach can offer these investors a valuable source of alpha and having a significant investment from a company such as FCA will help us attract interest from other investors and further develop our business.”

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