Indus Capital Executive to Start Long-Short Fund

Dec. 2, 2016
Indus Capital Executive to Start Long-Short Fund

By Suzy Waite and Nishant Kumar
Indus Capital Partners’s Theron de Ris is starting his own hedge fund firm in London next year.
The Eschler Recovery Fund will start trading in January with less than $10 million from friends and family, according to de Ris. He plans to grow assets to $20 million by early 2018. The fund will primarily focus on North American stocks and will also invest in European equities in the financial, consumer, material and energy sectors, de Ris said in a telephone interview on Nov. 30.
De Ris has been managing his long-short equity strategy as a private pool of capital for the past four years while working at Indus Capital’s London office. The new fund will mirror the existing strategy, which has gained an average of 9 percent each year since 2012 and is up about 42 percent so far this year through Nov. 30, he said.
The strategy benefited this year from investments in Avon Products Inc., Leucadia National Corp., Apollo Education Group and precious metals producers, including New Gold Inc. and Silver Wheaton Corp., de Ris said.
During his eight-year tenure at $5.8 billion Indus Capital, which manages long-short and long-only equity funds focused on Asia and emerging markets, de Ris worked as a research analyst, in the business development unit and as a consultant.
His new fund will take a long-term bullish view on uranium, which has been in a “massive bear market” since the Fukushima disaster in 2011, he said. “There’s now excess supply because Japan shut their nuclear plants and Kazakhstan is pushing down the spot prices but we’re at a stage where utilities are relying on the spot market just to keep up,” he said. Uranium’s supply and demand chain is “reasonably predictable, because demand does keep marching up and supply can’t grow with spot prices at $20 per pound versus a production cost closer to $60 per pound.”
De Ris said he’s forecasting a turnaround for uranium demand in 2019 and that spot prices should move up before then.
De Ris began his career at Goldman Sachs as an equities analyst. He joined Morgan Stanley in 2000 and ran the global equity sales desk in London from 2005 to 2007.

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