At a time when most retailers are unsure about the future of consumer spending, one hedge fund company is plunging into the unknown.

Best known as Singapore’s first home grown hedge fund company, Ferrell Asset Management is making waves in Singapore by venturing into the lifestyle business and in particular, the fashion industry by backing veteran home-grown fashion designer Thomas Wee  and exclusively distributing luxury French label Herve Leger (in Singapore and Taiwan).

Both are due to open next year.

The former will cost Ferrell roughly $250,000 to start up while the latter $750,000.

According to Ferrell's executive director Jeanna Chan, the move into “brands” either as an agent or distributor is an extension of previous retail investment initiatives such as investing money in the stocks and shares of retail companies.

"For us, it is not simply a matter of putting money into a venture and hoping it would turn around. Profit comes when you put effort into the venture," explains Ms Chan.

“After all, we are investing our clients’ money so we decided that by taking care of the brands ourselves, we are also making sure that the investment remains as sound as possible.”

Ms Chan adds that Wee was chosen mainly because the company identifies with what the designer stands for - exquisite tailoring, elegant designs and premium quality.

“He is a very well loved local designer and as Singapore’s first hedge fund company, we like to back things that are local.

After watching him at this year’s fashion festival where we were impressed with his runway collection, we thought, why don’t we do something with Thomas Wee?”

As for Herve Leger, Ms Chan admits the label is a personal favourite of hers, having been a collector of their vintage bandage dresses for many years.

“We believe that Singapore's fashion industry is ready for and will embrace Herve Leger, especially since their vintage dresses sell out in Singapore," she says.

Even as hedge funds are known to take bets on stocks, it will be interesting to see how this retail gamble on Ferrell’s part will work out.

This article was first published in The Business Times on Dec 14, 2008.

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