Former Goldman trader Sze's Asia hedge fund falls

City A.M. Reporter
FORMER Goldman Sachs Group trader Morgan Sze’s (pictured) hedge fund Azentus Capital lost 6.79 per cent in 2011, two sources with direct knowledge of the matter said yesterday.

The Hong Kong-based multi-strategy hedge fund, which could invest globally but mainly focuses on companies related to Asia, had a blockbuster start with about $1bn (£646m) on 1 April last year, and now manages $1.9bn.

By comparison, the Eurekahedge Asia Multi-Strategy index was down 4.9 per cent between April and December last year, while regional hedge funds lost about nine per cent during the period.

Started by Sze, former head of Goldman’s principal strategies group, Azentus Capital was one of the biggest hedge funds to launch since the onset of the credit crisis and one of the most high-profile in Asia.

The hedge fund faced a tough third quarter when Asian shares as measured by the MSCI AC Asia index lost about 15 per cent. Last year was in general a difficult year for hedge funds, as they were rattled by the European debt crisis and ongoing fears of an economic slowdown.