Investec Asset Management has lost three fixed income fund managers who have left to set up a hedge fund.

Paul Brain, Andrew Seaman and Mark Johns, who focused on credit and sovereign high yield, are likely to form a fixed income-based hedge fund. Details of the new vehicle could not be determined by press time, although the current craze for hedge fund start-ups has largely been for equity-based strategies. There could be an appetite for fixed income funds as the equity hedge funds hit capacity.