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Drake Builds Asia Operation

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NEW YORK (–Fixed-income manager Drake Management LLC has formed a team for Asian clients and developed a web site for Asian investors.

Richard Horodeck, a lawyer with expertise in offshore investments by Japanese financial institutions, joined the firm to head the Drake Asian product development and client service group. The team includes Kenji Yamauchi and Takako Funada, who have worked with Mr. Horodeck at HedgeJapan, a consulting firm he founded.

Drake is pursuing a three-stage plan in Asia, Mr. Horodeck said. The first step was forming relationships in the region, and the second was setting up the web site. The site is currently available in English and Japanese; Chinese and Korean will be added in 2005.

The third stage is opening an office in Tokyo and forming strategic relationships with Asian distributors and other firms. In Mr. Horodeck’s experience, Asian investors already understand hedge funds and are looking for good products. For its part, Drake would like to further diversify its investor base. Asian institutions, with their different policies, would add diversity.

The firm, which manages more than US$2 billion, showed strong performance this year, with around 8% returns in its flagship fund. It recently reopened a fund for investment, with plans to close again after taking in another US$700 million. The managers expect to repeat these steps in the future so that the effect of additional capital can be observed, although they believe the current fixed-income strategy has plenty of capacity.

Contact Bob Keane with questions or comments at: [email protected].