Atom Capital, the Tokyo-based investment advisor, has partnered with Gordian Capital Singapore and Penjing Asset Management (Hong Kong) to introduce a new fund called the Atom Japan Alpha Fund.

Atom Japan, which is domiciled in the Cayman Islands, is set to launch in March this year with an initial capitalisation of approximately $20 million and a capacity of $500 million. Atom Capital will take a sub-advisory role in the undertaking, Gordian will act as investment advisor, while Penjing will be the anchor investor, the company said.

The fund will have a net exposure of more or less 50 per cent and will employ leverage of about 150 per cent. According to Atom Capital founder Atsuko Tsuchiya, the increased number of merger and acquisition activities complement the new financial regulations set by Japan's new ruling political party, paving the way for a robust market for event-driven trades in the country. The fund is prepared to invest in around 60 to 80 firms as a start.