(Bloomberg) — U.S. hedge-fund firm North Rock Capital Management LLC plans to open its first Asian office in Hong Kong even as some peers seek other options following years of political unrest and Covid-19 travel restrictions in the city.
North Rock recruited former Credit Suisse Group AG prime broker Simon Chow to spearhead the effort, said two people with knowledge of the matter, who asked not to be identified discussing private information. More hires will be made later this year, one of them added.
Hong Kong has seen 176,629 more residents leave than arrive since the start of 2021, with nearly 80% of the net departures occurring this year, according to official data. The brain drain has been sparked by strict quarantine requirements and flight suspensions, adding to concerns about the city’s political stability and future as a regional financial hub.
A growing number of Hong Kong-based hedge funds or global firms with regional hubs in the city have opened satellite offices in other locations, including Singapore, London or New York.
North Rock is expanding after Asia-focused hedge funds likely wrapped up a sixth-straight month of losses, according to preliminary data from Eurekahedge Pte. Managers are struggling as growth stocks fall out of favor amid rising interest rates, geopolitical tensions and regulatory changes.
North Rock, based in Palm Beach Gardens, Florida, oversees about $3 billion in assets, according to its website. It allocates capital among more than 45 teams of investors, mostly industry specialists who use fundamental analysis or quantitative methods to pick stocks.
That puts it among the so-called hedge fund platforms, including larger rivals Millennium Management and Point72 Asset Management, whose teams of investors using diverse strategies and risk limits have helped shield their performances from broad market sell-offs.
Led by Chief Investment Officer Kelly Perkins, North Rock also has offices in New York and London. Perkins didn’t reply to an email seeking comment.
Chow was until last month a Hong Kong-based managing director on Credit Suisse’s prime brokerage team, responsible for Asia sales.
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