Artradis Fund Management

Tue Jun 1, 2004

Barracuda Fund: finding a niche in the market

The partners behind Barracuda Fund realised that the time was right to adopt an equity arbritrage vehicle in Asia while other start-ups went long/short

When Richard Magides and Steve Diggle decided, in the summer of 2001, to launch their Singapore-based Barracuda Fund, they firmly believed they were taking a strategic decision. Although most Asian hedge fund start-ups were adopting a long/short strategy, the partners realised that significant changes had occurred in the region, which made the timing propitious for launching an equity arbitrage vehicle. Deregulation of commission rates, which allowed for free pricing, had taken place in most Asian markets. Also, technological improvements meant that arb traders could access markets very quickly and cheaply.

"In the past, there weren't any real arbitrage hedge funds in Asia because the frictional cost of dealing was so high that your trades could only take place within a broker environment," says Steve...

ISSN: 2151-1845 / CDC10004H

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