London-based hedge fund Orn Capital is considering developing new long/short hedge funds. The firm will continue to focus on research-driven, bottom-up strategies, according to Lindsay Jones, head of business development. These are likely to include sector-specific long/short and Asia long/short funds.
Any action taken in this direction would be opportunistic and depends on the firm finding the right team, he explained. Orn currently runs around USD750 million across four single-strategy hedge funds and one multi-strategy fund. A fifth single-strategy vehicle, focusing on energy and resources, is due for launch in the next few months. “We want to continue to grow the business gradually,” said Jones. “It depends on when you meet the right kind of team. We don’t want to launch at a rapid rate.”
The energy fund will be Orn’s first sector-specific vehicle. Sectors pursued going forward will probably include financial services, telecommunications and technology, said Jones. Other possibilities include healthcare and pharmaceuticals, as well as industrials, although the firm is less sure about these, he added. The Asia fund is likely to be Japan-focused, if not Japan-specific. There has been a great deal of interest in this market over the past nine months but the real question is whether this is “a rally before another false dawn,” or the beginning of a new phase of sustained growth, he noted. Just a few weeks ago, Jones was in discussions with a manager interested in launching a Japanese long/short fund, but the manager has since decided to join an established Asia-focused hedge fund rather than start one from scratch, he said. “No doubt, in the next four to six weeks, I’ll find someone else to do the same strategy,” predicted Jones.
