Einoshin Arima and Giselle Leung, former proprietary traders at Mizuho Securities Co., raised about $120 million for a new hedge fund that will bet on rising and falling stocks, mostly in Japan.

The Hareion Fund will start with money from institutional investors in Asia, according to Arima, the founder of Hong Kong-based Areion Asset Management Co. The fund, which is able to take up about $300 million, won't accept additional money for a while to build up performance, he said.

The fund is getting a head start on other new hedge funds in the region, which have raised an average of about $12.2 million this year, according to Eurekahedge Pte. Its entry into the Japanese market comes after the benchmark Nikkei 225 stock average slumped to a 16-month low on concerns that the strengthening yen will hinder Japan's export-fueled recovery.