Contact Us

Hedge Fund Dymon Expands Hong Kong Office, Bucking Trend

June 25, 2024

Hedge fund firm Dymon Asia Capital is expanding in Hong Kong’s central business district, at a time when the city is seeing record premium office vacancies and declining rental rates.

Dymon has signed a lease for a 7,000 square-foot (650 square-meter) office in Edinburgh Tower in the Landmark commercial complex owned by Hongkong Land Holdings Ltd., said Kenneth Kan, Singapore-based deputy chief executive officer. The new space can seat more than 70 employees, double what its current office in the Nexxus Building can accommodate, he added.

The vacancy rate of grade-A offices in Hong Kong hit an all-time high of 16.7% at the end of March, while rents declined for the 20th consecutive quarter, according to a CBRE Group Inc. report. New supply combined with cost cutting may lead to more
empty premium office space and keep pressure on rental rates, it added.

Dymon has occupied the Nexxus Building office since 2016 and has more than 30 employees in Hong Kong, Kan said. The $2.5 billion multi-strategy hedge fund returned an estimated 10% in the first five months of this year.

Out of nearly 15 portfolio managers it has hired since the start of 2023, 40% have chosen to be based in the city, even though they were offered the option of working in its other locations, including Singapore, Tokyo, Mumbai and Shanghai, Kan said.

“With a growing pool of talent choosing to work in Hong Kong, this necessitated the need for a larger office, prompting us to search for a suitable space earlier this year,” Kan added. “Hong Kong remains a key market for Dymon Asia, and we will continue to grow our team here.”

Shares of Hongkong Land, Central’s biggest commercial property landlord, rose as much as 3.6% in Singapore trading on Tuesday, the biggest intraday gain in two weeks.

Hong Kong has been trying to lure back talent and firms after stringent Covid-era restrictions, geopolitical concerns and China’s economic slowdown led to an exodus. Such government efforts have been complicated by harsh economic realities.

A lack of investment banking deals has prompted some international financial firms to shrink office space. Hong Kong’s proceeds from initial public offerings in the first quarter were the lowest since 2009. Bank of America Corp. cut more than one floor in Cheung Kong Center in Central to move some of its staff to a cheaper location, Bloomberg News reported in March.

Mainland Chinese companies, once the city’s most aggressive tenants leasing premium offices, are not rushing in either. They represented only 8% of the new leases in the first quarter, data from CBRE show.

On the asset management side, Hong Kong has traditionally been the region’s top hedge fund hub. China-focused hedge funds have on average returned 1.1% this year, a long way from recouping their losses since 2021, according to a Eurekahedge Pte gauge.

Dymon plans to move into its new office early fourth quarter. Kan declined to disclose the length of the lease and the rental rates, citing a confidentiality agreement.

Source: Bloomberg Hedge Fund Dymon Expands Hong Kong Office, Bucking Trend – Bloomberg

Categories: Newsroom

You May Also Like

January 30, 2019
Grades still good indicator of candidate quality, employers tell student forum
January 24, 2020
First Successful interest rate swap trade

Disclaimer

This webpage contains important legal and proprietary information concerning Dymon Asia Capital (Singapore) Pte. Ltd., its affiliates (collectively known as “Dymon Asia“) and its funds. Before proceeding, please read the following disclaimer statements.

By clicking the “I AGREE” button, you are deemed to be representing and warranting that (1) you have read and understand the information contained in this page and accept the terms and conditions contained herein, (2) the applicable laws and regulations of your jurisdiction allow you to access the information on this webpage, (3) you are duly authorized to access this webpage for the purpose of acquiring information, and (4) you or any other person or entity you represent initiated the discussion, correspondence or other communications with Dymon Asia or its representatives, which resulted in you requesting access to Dymon Asia’s website and the information regarding its funds, and none of Dymon Asia or its representatives at any time directly or indirectly contacted you with respect to the provision of investment advisory services or investment in a Dymon Asia fund prior to such unsolicited initiation of discussions, correspondence or other communications.

The information on this webpage is not intended for persons located or resident in jurisdictions where the distribution of such information is restricted or unauthorized. No action has been taken to authorize, register or qualify any of the Dymon Asia funds or otherwise permit a public offering of any Dymon Asia fund in any jurisdiction, or to permit the distribution of information in relation to any of the Dymon Asia fund in any jurisdiction.

To the best of its knowledge and belief, Dymon Asia considers the information contained herein as accurate as at the date of publication. All information and opinions in this webpage are subject to change without notice. No representation or warranty is given, whether express or implied, on the accuracy, adequacy or completeness of information provided in the website or by third parties. The materials in this webpage could include technical inaccuracies or typographical errors, and could become inaccurate as a result of developments occurring after their respective dates. Dymon Asia undertakes no obligation to maintain updates to such information. Any links to other websites contained within this webpage are for the convenience of the user only and do not constitute an endorsement by Dymon Asia of these websites. Dymon Asia is not responsible for the content of other websites referenced in this webpage. Neither Dymon Asia nor its affiliates and their respective shareholders, directors, officers and employees assume any liabilities in respect of any errors or omissions on this webpage, or any and all responsibility for any direct or consequential loss or damage of any kind resulting directly or indirectly from the use of this webpage. Unless otherwise agreed with Dymon Asia, any use, disclosure, reproduction, modification or distribution of the contents of this webpage, or any part thereof, is strictly prohibited. Dymon Asia expressly disclaims any liability, whether in contract, tort, strict liability or otherwise, for any direct, indirect, incidental, consequential, punitive or special damages arising out of, or in any way connected with, your access to or use of this website.

This webpage is not an advertisement and is not intended for public use or distribution. This website has been prepared for the purpose of providing general information only without taking account of any particular investor’s objectives, financial situation or needs and does not amount to an investment recommendation. An investor should, before making any investment decision, consider the appropriateness of the information in this website, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. In all cases, anyone proposing to rely on or use the information contained in the website should independently verify and check the accuracy, completeness, reliability and suitability of the information. The information contained in this webpage does not constitute financial, investment, legal, accounting, tax or other professional advice or a solicitation for investment in Dymon Asia’s funds, nor does it constitute an offer for sale of interests issued by funds that are managed or advised by Dymon Asia. Any offer can only be made by the relevant offering documents, together with the relevant subscription agreement, all of which must be read and understood in their entirety, and only in jurisdictions where such an offer is in compliance with relevant laws and regulatory requirements.

Simulations, past and projected performance may not necessarily be indicative of future results. Figures may be taken from sources that are believed to be reliable (but may not necessarily have been independently verified), and such figures should not be relied upon in making investment decisions. Dymon Asia, its officers and employees do not assume any responsibility for the accuracy or completeness of such information. There is the risk of loss as well as the opportunity for gain when investing in funds managed or advised by Dymon Asia.

Dymon Asia Capital (Singapore) Pte. Ltd. holds a capital markets services licence for the provision of fund management services to eligible investors and is an exempt financial advisor pursuant to paragraph 23(1)(d) of the Financial Advisers Act (“FAA”).  Accordingly, this website and its contents is permitted only for the use of persons who are “institutional investors” or “accredited investors”, each within the meaning provided in the Singapore Securities and Futures Act (Cap.289); “professional investors” within the meaning provided in the Hong Kong Securities and Futures Ordinance; or the equivalent class of “accredited investor” or “professional client” under the laws of the country or territory of such person. As an “institutional investor” and/or “accredited investor” certain disclosure requirements under the FAA in relation to the contents of this website would not apply to you as a recipient. The products and services described in this website are available to such aforementioned categories of persons only. None of the contents of this website have been approved or endorsed by the MAS or any other global regulator.

Please click “I AGREE” if you confirm and agree that you fall within any of the aforementioned categories.