Dymon Asia Capital (Singapore) Pte, the best-performing large hedge fund in Asia in 2011, hired a former head of macro trading at Goldman Sachs Group Inc. (GS:US) as chief executive officer, strengthening its interest-rate trading.
David Chan, 41, will also be a partner of Singapore-based Dymon, said founder Danny Yong. Chan, who headed macro trading at Goldman in Asia, will focus on managing the investment team, Yong said. The appointment is subject to regulators’ approval.
Yong is beefing up the firm’s management so he can focus on trading after assets expanded to $2.85 billion in February, including $2.5 billion in Dymon’s main macro fund. Dymon hired Jay Luo, former head of SAC Capital Advisors LP’s Asia-Pacific operations, as president and a partner in June.
“Right now, the fund’s investments are skewed towards foreign exchange, where a large part of our risk and our revenues are derived,” said Yong. “David’s strong foundation in Asian interest-rate trading, as well as his track record in building world-class trading businesses, will be hugely complementary to our existing business and will help us achieve our goal of becoming Asia’s premier macro hedge fund manager.”
Dymon Asia Macro Fund -- which seeks to profit from macroeconomic trends by wagering on bonds, currencies, stocks and commodities -- rose 3 percent in May, bringing its year-to- May return to 1 percent, Yong said. That compares with the 0.8 percent gain in the period by a Eurekahedge Pte index that tracks similar funds in Asia.
“I share the same vision and philosophy of running a trading business as Danny,” said Chan, who was a partner and most recently headed Goldman’s Asia-Pacific foreign exchange trading in Hong Kong and macro trading for the region excluding Japan. “I am confident that I would be able to leverage my trading and management experience to add to the business.”
In addition to the Hong Kong and Singapore offices of Goldman Sachs, Chan also set up branches in China, India and South Korea for the firm’s Asia macro businesses, Yong said.
Chan hired Yong to join Goldman Sachs’s macro trading desk in February 2000 where the two worked together in Hong Kong and Tokyo for six years, according to Yong.
“David is one of the best traders and leaders I have been associated with,” said Bank of America Corp.’s Co-Chief Operating Officer Thomas K. Montag, who formerly worked with Chan at Goldman Sachs in Asia. “As a trader he was always one of the highest return on risk people I knew.”
Dymon’s macro fund in 2011 had a more than 20 percent return, the most in Asia among hedge funds with assets of more than $1 billion, according to data compiled by Bloomberg. It started trading in August 2008 with $113 million of initial capital from Paul Tudor Jones’s Tudor Investment Corp., the Greenwich Connecticut-based hedge fund, as well as partners and employees, according to the firm.
The fund started accepting money from outside investors in August 2009 after it separated from Abax Global Capital Ltd., the asset manager part-owned by Morgan Stanley.
In June, the fund gave back some of the gains as the bearish bets on Australia and Europe have not continued to play out, said Yong. The Eurekahedge Hedge Fund Index returned 0.6 percent in June, according to preliminary figures.
“We owe it to our investors to continually upgrade our platform from an investing, risk management as well as operational perspective,” said Yong. “The fund is currently hard closed and we do not have plans to re-open until we continue to deliver the same level of performance our investors expect.”
Chan began his career at Goldman Sachs in April 1998 on the swaps desk as a senior trader running the regional Asia rates portfolio in Hong Kong, according to Dymon. He started out at Citigroup Inc. as a bond trader in 1992 in the city after graduating from the Chinese University of Hong Kong with a bachelor’s degree in business administration, Dymon said.
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