Bloomberg News

Ex-Lone Pine Manager Is Said to Start $500 Million Hedge Fund

July 16, 2012

Eashwar Krishnan, former Asia head of Lone Pine Capital LLC, raised $500 million for his own Asia- focused hedge fund that bets on rising and falling stocks, said two people with knowledge of the matter.

Tybourne Capital Management (HK) Ltd. can draw down an additional $500 million available from investors later this year as opportunities arise, said the people who asked not to be identified as the information is private. Tybourne Equity Fund started trading in Hong Kong on July 2, they said. Krishnan, Tybourne’s chief investment officer, declined to comment.

Krishnan is among former Asia heads of long-established U.S. hedge funds that are leading the largest startups this year in the region as investors become more reluctant to back new managers in their early days. Fifty-nine new Asia hedge funds that started in the first five months raised on average $23.5 million each, according to Singapore-based Eurekahedge Pte.

Krishnan was with Lone Pine, the Greenwich, Connecticut- based hedge fund run by Stephen F. Mandel Jr., for 12 years, including five as its Asia head in Hong Kong, said one of the people.

He left in the fourth quarter last year to plan his own hedge fund with Tybourne’s Chief Operating Officer Tanvir Ghani, said the person. Ghani worked for Goldman Sachs Group Inc. for 11 years, most recently as managing director on the New York- based bank’s prime brokerage team in Hong Kong, the person said.

Fund’s Strategy

The new fund will employ a long-short strategy and will be based on analyzing company fundamentals, said one of the people. In a short sale, a manager borrows a stock and sells it hoping it can be bought back later at a lower price.

Tybourne is implementing a so-called lockup under which the majority of the capital cannot be withdrawn in less than three years unless investors pay a penalty fee, the person said.

Alp Ercil, the former Asia head of New York-based hedge fund Perry Capital LLC, received about $440 million of initial capital commitments from investors for his Asia distressed asset fund by its first subscription deadline in the second quarter, three people with knowledge of the matter said at the time.

Carl Huttenlocher, the former Asia head of Highbridge Capital Management LLC, raised $900 million by March 1 for his Myriad Opportunities Master Fund Ltd. after opening it to outside investors on Dec. 1, said two people with information of the matter then.

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net


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