Martin Currie is to launch an energy hedge fund and has already been approached by a European client prepared to seed the portfolio.
With few companies running energy hedge funds there is a lot of capacity in the market, said Alan McLeod, director, head of European business development at Martin Currie.
'The stocks you are investing in are huge and very liquid so you have a very scalable product,' he said.
Seed capital for the energy fund is likely to be between $15m and $20m.
The fund will be run by Wendy Anderson who joined the group seven months ago from Credit Suisse First Boston, where she worked as an analyst.
The product will be the firm's fourth hedge fund launch. At the moment, it offers a Japan long/short, managed by Michael Thomas, an Asian long/short, managed by Jason McCay, and a UK long/short fund managed by Jeff Saunders and David Urch.
As reported in the August issue of HFR, the group also has plans to launch later this year a China long/short portfolio to be managed by Chris Ruffle and a European long/short to be run by Dino Fuschillo.