London-based hedge fund manager Algebris Investments LLP is in talks to set up a base in Asia over the next few months, joining a slew of Western managers driven to the region in search of higher returns and a friendlier regulatory environment, two sources said. 

 

Top officials from Algebris — backed by activist investor Christopher Hohn — visited Asia on a reconnaissance mission earlier this year but had yet to take a call on whether the new office will be located in Hong Kong or Singapore, said one of the sources.