TT and Polar vets preps special sits launch

The former head of Japanese equities at Polar Capital and an ex-TT International portfolio manager are preparing to launch a special situations fund.

James Salter and David Mitchinson are set to launch the Prodigy Japan Special Situations Fund next month after receiving approval from the Luxembourg regulator. It will be structured as a Ucits vehicle and run out of London.

The fund will be managed by Prodigy Capital Partners and will trade small to mid-cap Japanese stocks as well as futures.

It will hold between 25 and 40 positions, according to the firm.

The duo is working with Spring Capital for marketing and fundraising, Citibank Europe for administration and custody, Bank as the Manco, Deloitte as the auditor and a number of tier-one banks and local brokers for prime brokerage services.

Through April 2020 to the end of December, the strategy model returned 59.9%, according to documents seen by HFM.

Salter began his career at Martin Currie in Edinburgh where he focused on Japan. Following nearly seven years there, he moved to Schroders where he managed the asset manager’s Japan Investment Trust.

Three years later, he became a founding partner of Polar Capital where he worked for just under two decades. During his time there, Salter launched the Polar Capital Japan Fund.

Mitchinson started out as a portfolio manager covering Japanese equities at Axa Framlington Investment Management where he worked for just under six years.

He later moved to investment bank JP Morgan’s investment management business in Tokyo and Hong Kong. After around eight-and-a-half years there, he joined the Abu Dhabi Investment Authority as a senior PM to trade Japanese equities.

Mitchinson moved to London in 2015 to join TT International where he worked until September last year.

The average Asia-focused hedge fund returned 17.9% last year on a mean basis, HFM data shows, despite negative performance in the first quarter of the year.