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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note