Asia Traders Ready 'Capacity-Constrained' Arbitrage Hedge Fund

Aug 17 2012 | 12:55pm ET

A pair of Asia hands—and best friends—has leapt across the Pacific to launch a hedge fund.

Kyle Davis and Su Zhu have founded Three Arrows Capital. The San Francisco-based hedge fund plans to launch its maiden fund, an Asia market-neutral vehicle, in September with $10 million in initial assets.

The liquidity-constrained arbitrage fund will "take advantage of capacity-constrained strategies," Davies told eVestment|HFN.

"As asset allocators continue to move money to the largest hedge funds, I believe there are many smaller inefficiencies in the market that are ignored," the chairman and chief risk officer of the new firm said. "We seek to capitalize on a portfolio of smaller multi-asset arbitrage strategies."

Davies and Zu, who serves as CEO and chief investment officer, formerly worked in Hong Kong at Credit Suisse and Deutsche Bank, respectively. The two met in high school and then went to college together, at Columbia University.

Three Arrows' seed capital will come from co-workers, other fund managers and family offices.


In Depth

Virtu Celebrates Another Year Without a Single Day of Losses

Feb 26 2015 | 9:05am ET

High-frequency trading firm Virtu Financial Inc. reported another year without a...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk: How To Get In Front Of The Problem

Feb 26 2015 | 9:53am ET

In considering the topic of risk in the hedge fund world, specifically, the oversight...

 

Editor's Note