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

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...


FINalternatives Trending

From the current issue of