FCA Enters Strategic Relationship with Sensato

25 Oct, 2010

FRM Capital Advisors (FCA) has formed a strategic relationship with Sensato Capital Management whereby it will invest up to $50 million in the company’s Asia-Pacific hedge funds.

FCA, the hedge fund seeding division of Financial Risk Management, will provide Sensato with additional investment capital and resources to expand its platform.

San Francisco-based Sensato was founded in May 2009 by Ernest Chow and Jonathan Howe, former co-heads of active equity strategies at Barclays Global Investors (BGI). They both led and managed BGI’s Asia active equity strategies and were at one stage overseeing more than $30 billion in client assets.

Sensato adopts a fundamental, quantitative approach to investing in Asia-Pacific equity markets.

This is the second investment FCA has made in an Asia-focused manager since 2008. FCA currently invests in a total of seven hedge fund managers.

Patric de Gentile-Williams, chief operating officer of FCA, said Chow and Howe’s strategy “is well suited for investors looking for returns from Asian markets through a rigorous, relative value approach designed to extract alpha from markets.”

Chow, partner and co-founder of Sensato, said he expected institutional investors to continue to increase their exposure to Asian markets.