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

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...