Mitsubishi Corp. will set up a $300 million fund with Aladdin Capital Holdings LLC, a U.S. hedge fund, as part of a bid to strengthen its finance business.

Mitsubishi International Corp., a wholly owned subsidiary of Tokyo-based Mitsubishi, will buy a 19.5 percent stake in Aladdin Capital, Japan's biggest trading house said Wednesday.

The fund will start later this month or in June and plans to invest in funds managed by Delaware-based Aladdin, it said.

Mitsubishi set up its Industrial Finance, Logistics & Development Group in April 2007 to boost financial business and promote asset management.