Hong Kong-based hedge fund Doric Capital will soon add a Japan focused equity long/short fund to its suite of products. Michael Nock, Doric's managing director says the new Doric Kasagi fund is set to launch in mid-July. Based on initial investor interest, he expects the fund's launch size to be roughly $40 million - $50 million, with the fund having a capacity of approximately $300 million.
Joining Doric to manage the new fund is Linda Csellak. Csellak has a financial market career spanning over 20 years. Most recently she spent six years with Credit Agricole in Hong Kong, managing long-only total return portfolios, with an emphasis on fundamental research in Japan.
"Linda is a great fit with Doric as her existing style and approach to investing fits closely with ours," says Nock. "We feel her long only experience in Japan together with our valuation screening models, risk management tools and experience will make a very successful combination."
Csellak will be based in Hong Kong to maximize synergies and exchange of ideas with the existing Doric team, although she will make frequent trips to Japan where Doric has an analyst on the ground. Nock expects to hire more Japan-focused analysts as the fund grows.
The new fund will invest in Japanese companies with a market cap of above $1 billion. Smaller companies will fall into the remit of Doric's Pan-Asian small cap fund launched last year.
"Japan is an attractive market because of the depth and liquidity of the market. Having undergone a 17 year bear market there are a lot of opportunities to take advantage of mis-priced securities," explains Nock. "Of about 170 significant equity long/short players in Japan, over 100 are closed, so we feel there's definitely room in the market for more quality participants."
Doric Capital currently stands at $360 million in assets. Its flagship Doric Focus Fund (Asia ex-Japan) closed at $320 million earlier this year. The Doric Asia Pacific Small Cap Fund currently stands at $40 million, but the team expect to soft close the fund at $80 million before the end of the year.
