Former Folger Hill Asia boss, Angus Wai, has teamed up with PAG, the $30bn Asia alternatives giant, to establish a hedge fund platform aimed at attracting talented managers around the region.

Polymer Capital Management – an Asian equity-focused, market-neutral hedge fund platform – aims to generate consistent, low-volatility returns in Asian equity markets.

The firm will function as an independent investment platform, but it will have the support of PAG’s infrastructure and resources. Polymer aims to start trading in the second quarter of 2019 and it is understood it will initially manage approximately $800m.

AsiaHedge reached out to Wai to find out more about the new multi-manager.

AsiaHedge: You aim to attract some of the region’s top investment talent. Where is the HF manager talent coming from? What makes Polymer an attractive platform for these managers?

Angus Wai: I’ve built platforms like this a couple times now, and the most important thing is to create an environment where talent can succeed, and where it’s rewarded. Between that track record and PAG’s we feel that this will be a very attractive platform for PM’s.
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AsiaHedge: You also mentioned a need for strict risk management What makes a robust risk management framework?

AW: PMs operate within centrally established risk controls and investment mandates. Risk controls and investment mandates are scientifically designed through prudent and matured methodology, we monitor and enforce very strictly. Robust technology is used to continually monitor risk trends and exposures on an individual and aggregate basis.

AsiaHedge: Who do you consider as competition? What gives Polymer the edge?  

AW: We don’t see many people doing what we’re doing. As for edge, it’s the investment talent and risk management framework I’ve just mentioned.

AsiaHedge: What are the challenges/barriers to good performance for Asia-focused HFs?

AW: The markets in Asia are challenging mainly from maturity and behavior perspectives. Market liquidity tends to dry up when volatility is high. This is where we can add value as we have been operating under such environment with a proven track record.

AsiaHedge: Are there any tailwinds Asia-focused HFs can take advantage of in 2019?

AW: Talent. We do not have a firm market view. The business is expected to perform under any market environments given the neutrality on net exposure.

Q&A: Angus Wai, Polymer Capital Management on AsiaHedge.