Ex-HSBC Holdings product specialist creates Luminance Global Fund to invest in global liquid securities

December 23
1:06 AM 2013

Former HSBC Holdings product specialist Roshan Padamadan has began a hedge fund called Luminance Global Fund, Bloomberg reported. The hedge fund will look for opportunities in global liquid securities which include stocks, bonds and derivatives. Padamadan said that it will make investments in firms where the business models are expected to survive in nearly every scenario.

Padamadan will be running the fund which will begin trading on January 2. It will start with around $2 million in initial capital but Padamadan said he expects that to grow to $4 million in three months.

Padamadan told Bloomberg in an interview, "In this day and age, macroeconomic developments are particularly hard to call. We don't want companies which will swing with macro events. We are looking for companies which will be fine irrespective of macro."

Luminance Global Fund will be started together with Swiss-Asia Financial Services Pte. The non-investment services that will help the hedge fund reduce startup costs and lure investors will be provided by Swiss-Asia Financial Services. The report said hedge fund startups are going to Swiss-Asia and similar platforms after fund-of-funds experienced asset losses after the 2008 global financial crisis. Fund-of-funds allocate funds to money managers.

The pressure to lower fees and get investors is being faced by the $2 trillion global hedge fund industry brought about by client demand and the increasing cost of fulfilling regulations, the report said. A 25% performance fee will be charged by Luminance Global Fund, Padamadan and Sunand Razu, product specialist, said. They added that the first payment will be due after three years and that a management fee will not be charged.

Padamadan was with HSBC for seven years. His experience covered India, London and Singapore and spanned corporate credit analysis, asset management and sell-side research. He worked as a product specialist under HSBC GIF-Indian Equity Fund Manager's Sanjiv Duggal's team, the report said.

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