Jockey Club makes direct hedge-fund allocations

Hong Kong Jockey Club has begun making direct allocations to hedge funds, said Jacob Tsang, the director of group treasury at the horse-racing operator, which has invested more than US$1 billion in alternative assets.

The club made its first two such allocations to Och-Ziff Capital Management Group and Millennium Management recently, Tsang said.

In addition to controlling horse racing, the club operates authorised betting on football games and lotteries.

"It is the first time the club goes direct and there is room to add direct managers in the future," Tsang said.

"This move signifies a paradigm shift as the club moves forward to a more efficient way to deploy capital."

The club is joining a growing list of institutions that have directly allocated capital to hedge funds in recent years, bypassing funds of funds and the extra fees they charge to make such investments on their behalf.