Nea Capital is planning to launch its first hedge fund before year end and is currently looking for a prime broker. The fund, called Nea Capital Diversified Strategies, will be an equity market neutral fund and use options, said Michael Hanes, portfolio manager and trader. The London-based firm is currently negotiating with Barclays Capital, Deutsche Bank, UBS Warburg, Morgan Stanley and Bear Stearns as possible choices for a prime broker and will make a decision next month.
Hanes is looking to establish a prime broker relationship with a firm that specializes in equity options. He added that other important considerations include the quality of a prospective bank's equity derivatives team and how it will be able to help Nea Capital raise money. Because several colleagues at Nea Capital are ex-Barclays, Deutsche Bank and UBS employees there is a bias toward those firms. Hanes was formerly a director within fixed-income derivatives at Barclays, responsible for trading long-dated currency derivatives and emerging market derivatives. Officials from Bear Stearns and Barclays Capital declined comment, and calls to Deutsche Bank, UBS and Morgan Stanley were not returned.
