Singapore-based Solaris Asset Management is launching the Solaris Capital SPC Equity Arbitrage FundSingapore-based Solaris Asset Management is launching the Solaris Capital SPC Equity Arbitrage Fund and expects to start trading on November 8^th with USD23 million reports Bloomberg this week. Headed up by Thomas Tey, a former head of equities derivatives at Oversea-Chinese Banking Corporation (OCBC), the startup has attracted Chinese investors with Tey admitting that in his plans to grow the fund to USD100 million by the end of 2011 he would be focusing on Asian investors as the US and Europe is “very, very tough”. “This is not a very conducive environment to be raising money, but we expect to get to our target,” Tey told Bloomberg.According to industry research, 40 per cent of assets in Asian hedgies come from US investors. The fund, which won’t be taking directional risks, will trade stocks and derivatives to profit from price mismatches - equity arbitrage - between related securities and will initially target Japan, Hong Kong, Singapore, Taiwan, Korea and Australia. The fund will also be denominated in Singapore rather than US dollars, with Tey explaining that his investors expect the RMB to continue strengthening against the greenback. Citigroup Inc, has been selected as prime broker.