The move to create MY Alpha Management comes after York Capital Management said it would exit most of its hedge fund business.
In a letter to investors, York said that a new Asia-based firm will be created with $2.7 billion of assets, which will be led by York's current regional chief investment officer, Hong Kong-based Masahiko Yamaguchi.
According to a «Bloomberg» report, MY Alpha will keep all of York's Asia-based employees, with Mark He, currently co-portfolio manager and head of Greater China, promoted to partner at the new company, and Kevin Carr, global director of operations, becoming chief operating officer.
York has operated in Asia for the past 13 years, returning an annualized 12 percent since Yamaguchi took charge in April 2014, «Bloomberg» said. York said it will keep a «meaningful economic interest in the new entity, through a passive non-voting interesting, ensuring alignment of interests.»
Impairment
Managed by billionaire Jamie Dinan, York is one of the longest-running hedge funds in the U.S. but has struggled of late. The firm manages about $8.5 billion in longer-duration credit and private equity strategies, including distressed assets, special opportunities and CLOs.
Credit Suisse, which purchased a minority stake in York in 2010, said it expects to take a $450 million impairment, which will be booked in the fourth-quarter results of its Asset Management business, and intends to have a continuing interest in the Asia business once it is spun out next year.
