London-based hedge fund manager Algebris Investments LLP is in talks to set up a base in Asia over the next few months, joining a slew of Western managers driven to the region in search of higher returns and a friendlier regulatory environment, two sources said. 

 

Top officials from Algebris — backed by activist investor Christopher Hohn — visited Asia on a reconnaissance mission earlier this year but had yet to take a call on whether the new office will be located in Hong Kong or Singapore, said one of the sources. 

 

The sources, who are both familiar with the situation, declined to be named owing to potential future business ties with the hedge fund manager. An official at Algebris declined to comment when reached by Reuters. 

 

Algebris, which runs long-short funds investing in global financial services, has US$1.6 billion ($2.22 billion) in assets under management. The fund was founded by Eric Halet and Davide Serra in 2006 and made news last year after selling its stake in Assicurazioni Generali (GASI.MI) after criticising the Italian insurer’s governance.