RYE, N.Y. (HedgeWorld.com)–Tremont Capital Management Inc.* was selected by Nikko Asset Management, Tokyo, to advise on a new Japanese fund of funds program initially targeting Japanese pension funds.
Tremont was selected to help Nikko expand its hedge fund offerings globally. Nikko currently offers onshore, yen-based alternatives and is looking to broaden its offerings, said Masafumi Hikim, president and chief executive of Nikko Asset Management, in a statement from Tremont.
Even though most Japanese plan sponsors aren’t prepared to have a strong opinion on alternative asset allocation, they do want to understand industry trends and money flows within alternatives, an area of expertise for Tremont, Mr. Hikim said.
Barry Colvin, president of Tremont Capital, said that there are regulatory requirements that a Japanese hedge fund must meet in order for a Japanese pension fund to invest in a fund of funds, but from an investment perspective Tremont will manage Nikko’s funds as it does its other funds. The investment process will be exactly the same, Mr. Colvin said.
Tremont will monitor risk in the program with the assistance of joint venture partner RiskMetrics. Tremont, a unit of Oppenheimer Acquisition Corp., advises on more than US$9 billion in hedge funds.
*Tremont Capital Management Inc., Rye, N.Y., is a strategic partner of and a minority investor in HedgeWorld.