Hong Kong: Arrowpoint Investment Partners aims to raise as much as US$400mil of fresh capital by the first quarter, as the multistrategy hedge fund firm expands the number of investment teams, says a person with knowledge on the matter.
The US$1.2bil firm, helmed by former Millennium Management Asia co-chief executive officer Jonathan Xiong, is accepting additional money for the first time since October.
The extra capital from existing and new investors is expected to put it on course toward US$2bil of assets by the end of 2026, the person said, asking not to be identified discussing private information.
It has received commitments to cover part of that amount.
Chief marketing officer Elizabeth Lo declined to comment.
With its main offices in Singapore and Hong Kong, Arrowpoint is among only a handful of Asia-based firms that follow the business model of global behemoths such as Millennium, Citadel and Point72 Asset Management, allocating capital among armies of investors employing a multitude of strategies.
In the race for talent and client money, Arrowpoint, Dymon Asia Capital and Polymer Capital Management have pitched themselves as more sharply focused on the region’s deepening and expanding capital markets.
Arrowpoint won backing from Canada Pension Plan Investment Board, Blackstone Inc and a unit of Temasek Holdings Pte at inception.
Its hedge fund began trading in July last year and returned 7.3% in the first eight months of this year, after a 3% gain in August.
The performance and fund-raising plans stand out in a market where investors’ appetite for multi-strategy, multi-manager hedge funds has begun to abate. Combined assets at 55 such firms fell for the first time in seven years in the 12 months to June last year, Goldman Sachs Group Inc wrote in a report last September.
While it is not unusual for new pod shops to trail more established peers in the initial months because of the higher relative fixed costs, the shift in investor attitude heightens the pressure on newcomers to deliver.
A significant driver behind Arrowpoint’s results this year has been Asian currency and rates trades, according to the person.
You Jiong is set to join as its ninth Asia macro portfolio manager later this month, the person said.
Wei Wei, another portfolio manager, joined in August after working for Singapore-based macro hedge fund firm Astignes Capital Asia Pte Ltd. Jacky Yeung, formerly of Brevan Howard Asset Management, started earlier this year.
The new arrivals are bolstering the number of investment pods at Arrowpoint to 21, a 20% increase since the end of last year, said the person. Three more portfolio managers have been signed and will start later. — Bloomberg
