$7B Hedge Fund Pharo to Set Up Office in Abu Dhabi to Expand Emerging Markets Strategy

British hedge fund Pharo Management is planning to open an office in Abu Dhabi, becoming one of the global asset management firms that have been flocking to the Gulf region in recent years. According to informed sources, the plan is still in the early preparatory stage.

Headquartered in London, Pharo Management was founded in 2000 and engages in macro-strategy investments in global emerging markets, with assets under management (AUM) of approximately $7 billion. The firm is currently planning to relocate its Africa fund team from New York and London to Abu Dhabi.

Informed sources told the media that Abu Dhabi's time zone and flight arrangements are closer to Africa, which facilitates investment activities in related markets. It is expected that more employees will gradually move to Abu Dhabi in the future, and the new office may become operational by the end of this year.

A spokesperson for Pharo confirmed the plan to set up an office in Abu Dhabi but did not disclose further details.

It is reported that Pharo's Africa fund currently manages assets of about $819 million, mainly investing in the local financial markets of African countries, including currency, interest rate, and credit markets. As of May this year, the fund has recorded a return of 11.8%.

In recent years, the United Arab Emirates (UAE) has become one of the most active markets for hedge funds in the Middle East, attracting a large number of international asset management companies to establish a presence in Abu Dhabi and Dubai.

The exemption from personal income tax and favorable time zone location have become the main factors for the UAE to attract asset management institutions.

Currently, Abu Dhabi has attracted heavyweight Western hedge funds such as Brevan Howard and Marshall Wace. It is also reported that institutions like Hudson Bay Capital Management and Arini (founded by former Credit Suisse star trader Hamza Lemssouguer) are also preparing to enter this market.