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

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…