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Mining giant Rio Tinto has reaffirmed its commitment to a dual-listed structure and urged shareholders to reject a proposal by activist hedge fund Palliser Capital to review its listings in London and Sydney, according to a report by Reuters.

The hedge fund, alongside more than 100 shareholders, is pushing for a shift to a single Australian listing, arguing that such a move would enhance Rio’s share price and unlock shareholder value. The campaign mirrors past activist efforts, including BHP’s unification in 2022, which followed similar investor demands.

Rio Tinto though has dismissed Palliser’s claims, stating that it has already conducted a comprehensive review of the structure and engaged with key stakeholders, including Palliser. The company maintains that a unification would be value-destructive and unnecessary for strategic flexibility.

“A dual-listed companies (DLC) structure unification is not required to provide the group with strategic flexibility,” Rio Tinto said in a statement on Wednesday.

With annual shareholder meetings scheduled for 3 April in London and 1 May in Perth, the hedge fund’s push sets the stage for a potential showdown. However, resistance from Australian shareholders, who argue that consolidation would erode value, could pose a challenge to Palliser’s ambitions.

Mining giant Rio Tinto has reaffirmed its commitment to a dual-listed structure and urged shareholders to reject a proposal by activist hedge fund Palliser Capital to review its listings in London and Sydney, according to a report by Reuters.

The hedge fund, alongside more than 100 shareholders, is pushing for a shift to a single Australian listing, arguing that such a move would enhance Rio’s share price and unlock shareholder value. The campaign mirrors past activist efforts, including BHP’s unification in 2022, which followed similar investor demands.

Rio Tinto though has dismissed Palliser’s claims, stating that it has already conducted a comprehensive review of the structure and engaged with key stakeholders, including Palliser. The company maintains that a unification would be value-destructive and unnecessary for strategic flexibility.

“A dual-listed companies (DLC) structure unification is not required to provide the group with strategic flexibility,” Rio Tinto said in a statement on Wednesday.

With annual shareholder meetings scheduled for 3 April in London and 1 May in Perth, the hedge fund’s push sets the stage for a potential showdown. However, resistance from Australian shareholders, who argue that consolidation would erode value, could pose a challenge to Palliser’s ambitions.

Some strategies aren’t new, but what gives them an edge is how they are applied. Such is the case with Regents Gate Capital, co-founded by Joshua White, Yi-Sung Y, and Dane Vrabac. By integrating artificial intelligence into a traditional market-neutral approach, they’ve created a unique investment proposition in an already crowded hedge fund landscape.

It’s been just over a year since Regents Gate launched, employing a fundamental equity market-neutral strategy that exemplifies the edge fund approach.

The investment methodology involves taking long and short positions in stocks based on fundamental analysis, with the goal of remaining neutral to overall market movements. White explains that the strategy prioritises stock-specific risks over broader market factors, creating a differentiated offering particularly attractive to pension funds seeking uncorrelated returns.

This playbook, pioneered by hedge fund major Citadel, is one White knows well, having spent 15 years as a Portfolio Manager there and at Balyasny Asset Management. However, what sets Regents Gate apart is its integration of custom-built artificial intelligence, which the firm claims enables predictions with 70–80% accuracy.

“We’ve taken a proven strategy and evolved it by incorporating more data, making us more informed, more predictive, and more accurate,” says White.

The AI models assess stocks by analysing over 1.5 million data features, including business trends, using an average of 100 data points per stock to forecast performance – establishing a technological edge in a strategy typically dominated by traditional fundamental analysis.

But, whilst AI plays a central role in the investment process, human oversight is present at every step, curating data features and setting key performance indicators (KPIs). The final decision always rests with the team.

“We review trades daily to ensure the most up-to-date fundamentals are reflected in our portfolio, all whilst maintaining tight risk controls,” says White.

The depth of AI-driven analysis aligns well with Regent Gate’s portfolio, which is 90% composed of industrial companies – a sector defined by its numerous moving parts – with consumer and technology firms making up the remaining 10%.

“These are big, complex companies,” says White. “They have numerous product lines across multiple geographies, and their performance is impacted by many external factors.”

Traditional approaches often struggle to predict outcomes for such companies since no single product line dictates success, he explains – highlighting precisely the type of inefficiency that edge funds aim to exploit.

Currently, Regents Gate focuses on developed markets – specifically Europe, the US, and Japan – as these regions are liquid and well understood by the firm and its strategy.

“We don’t cherry-pick, but we focus on where we do a good job and we’ve done a very good job historically,” says White.

For now, Regents Gate has not publicly disclosed its returns.

While mega-funds continue to dominate hedge fund flows and startup numbers decline, a quiet revolution is taking place in the industry’s margins. Investors are increasingly hunting specialised managers who can fill precise portfolio gaps – from employee wellness to sustainable living. 

These emerging niche strategies aren’t just surviving in the shadow of multi-strategy giants; they’re thriving by targeting unexploited market inefficiencies and emerging secular trends. The series would explore how these specialised funds are carving out their space in an industry typically associated with scale, examining their unique value propositions, challenges, and the investors backing their vision.

Some strategies aren’t new, but what gives them an edge is how they are applied. Such is the case with Regents Gate Capital, co-founded by Joshua White, Yi-Sung Y, and Dane Vrabac. By integrating artificial intelligence into a traditional market-neutral approach, they’ve created a unique investment proposition in an already crowded hedge fund landscape.

It’s been just over a year since Regents Gate launched, employing a fundamental equity market-neutral strategy that exemplifies the edge fund approach.

The investment methodology involves taking long and short positions in stocks based on fundamental analysis, with the goal of remaining neutral to overall market movements. White explains that the strategy prioritises stock-specific risks over broader market factors, creating a differentiated offering particularly attractive to pension funds seeking uncorrelated returns.

This playbook, pioneered by hedge fund major Citadel, is one White knows well, having spent 15 years as a Portfolio Manager there and at Balyasny Asset Management. However, what sets Regents Gate apart is its integration of custom-built artificial intelligence, which the firm claims enables predictions with 70–80% accuracy.

“We’ve taken a proven strategy and evolved it by incorporating more data, making us more informed, more predictive, and more accurate,” says White.

The AI models assess stocks by analysing over 1.5 million data features, including business trends, using an average of 100 data points per stock to forecast performance – establishing a technological edge in a strategy typically dominated by traditional fundamental analysis.

But, whilst AI plays a central role in the investment process, human oversight is present at every step, curating data features and setting key performance indicators (KPIs). The final decision always rests with the team.

“We review trades daily to ensure the most up-to-date fundamentals are reflected in our portfolio, all whilst maintaining tight risk controls,” says White.

The depth of AI-driven analysis aligns well with Regent Gate’s portfolio, which is 90% composed of industrial companies – a sector defined by its numerous moving parts – with consumer and technology firms making up the remaining 10%.

“These are big, complex companies,” says White. “They have numerous product lines across multiple geographies, and their performance is impacted by many external factors.”

Traditional approaches often struggle to predict outcomes for such companies since no single product line dictates success, he explains – highlighting precisely the type of inefficiency that edge funds aim to exploit.

Currently, Regents Gate focuses on developed markets – specifically Europe, the US, and Japan – as these regions are liquid and well understood by the firm and its strategy.

“We don’t cherry-pick, but we focus on where we do a good job and we’ve done a very good job historically,” says White.

For now, Regents Gate has not publicly disclosed its returns.

While mega-funds continue to dominate hedge fund flows and startup numbers decline, a quiet revolution is taking place in the industry’s margins. Investors are increasingly hunting specialised managers who can fill precise portfolio gaps – from employee wellness to sustainable living. 

These emerging niche strategies aren’t just surviving in the shadow of multi-strategy giants; they’re thriving by targeting unexploited market inefficiencies and emerging secular trends. The series would explore how these specialised funds are carving out their space in an industry typically associated with scale, examining their unique value propositions, challenges, and the investors backing their vision.

Veteran hedge fund manager Richard Perry is making a return to the industry, nearly a decade after closing Perry Capital in 2016, with the 70-year-old joining distressed credit specialist Olympus Peak Management as a partner, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing the return of the former Goldman Sachs merger arbitrage specialist, who founded Perry Capital in 1988 and built it into a $15bn fund at its peak. After three consecutive years of losses and client outflows, he shut down the firm but expressed hope that his legacy would continue.

Now, Perry is teaming up with Olympus Peak founder Todd Westhus – a former Perry Capital executive – and Matt Englehardt, another long-time colleague, to launch a new distressed credit fund. The trio are raising up to $500m, with plans to co-manage the investment committee.

Westhus, who launched Olympus Peak in 2018, was instrumental in some of Perry Capital’s most successful trades, including: a $2bn profit from shorting subprime mortgages during the 2008 financial crisis; a $600m gain on Argentine bonds; and successful bets on Fannie Mae and Freddie Mac securities in 2010.

At Olympus Peak, Westhus has continued that success, profiting from the bankruptcies of Latam Airlines, crypto exchange FTX, and PG&E. The firm’s trade claims fund, launched in 2021, has generated low double-digit net returns, with a win rate exceeding 90%, sources said.

Veteran hedge fund manager Richard Perry is making a return to the industry, nearly a decade after closing Perry Capital in 2016, with the 70-year-old joining distressed credit specialist Olympus Peak Management as a partner, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing the return of the former Goldman Sachs merger arbitrage specialist, who founded Perry Capital in 1988 and built it into a $15bn fund at its peak. After three consecutive years of losses and client outflows, he shut down the firm but expressed hope that his legacy would continue.

Now, Perry is teaming up with Olympus Peak founder Todd Westhus – a former Perry Capital executive – and Matt Englehardt, another long-time colleague, to launch a new distressed credit fund. The trio are raising up to $500m, with plans to co-manage the investment committee.

Westhus, who launched Olympus Peak in 2018, was instrumental in some of Perry Capital’s most successful trades, including: a $2bn profit from shorting subprime mortgages during the 2008 financial crisis; a $600m gain on Argentine bonds; and successful bets on Fannie Mae and Freddie Mac securities in 2010.

At Olympus Peak, Westhus has continued that success, profiting from the bankruptcies of Latam Airlines, crypto exchange FTX, and PG&E. The firm’s trade claims fund, launched in 2021, has generated low double-digit net returns, with a win rate exceeding 90%, sources said.

Momentum-driven hedge funds are facing a brutal start to 2025 as shifting economic conditions and geopolitical tensions trigger sharp reversals in previously high-flying trades, according to a report by Bloomberg.

The once-reliable strategy of riding market trends – favouring US tech stocks and betting on US economic outperformance – has been upended, leading to widespread losses across systematic and discretionary hedge funds.

The report cites Societe Generale’s CTA Index as showing that trend-following hedge funds, which typically trade futures based on prevailing price movements, are down 4.3% year-to-date, marking their second-worst start to a year since 2014. Equity-focused momentum strategies have suffered even steeper drawdowns, with one gauge falling 21% in just four weeks up to 10 March, one of the most abrupt declines on record.

The turbulence has also hit exchange-traded funds (ETFs) tracking momentum trades, with BlackRock’s $14bn iShares MSCI USA Momentum Factor ETF seeing $800m in outflows, the largest single liquidation in two years, as investor sentiment toward high-priced US equities soured.

“You’ve got de-risking at the same time as fundamental weakening, at the same time as geopolitical uncertainty,” said Adam Singleton, CIO of external alpha at Man Group, the world’s largest listed hedge fund. “When all of that converges, momentum strategies take a hit.”

Momentum strategies, which profit from extended trends in asset prices, have been caught off guard by sudden reversals across a range of asset classes with once-dominant AI and tech names seeing pullbacks as interest rate concerns and trade risks mount.

The White House’s tariff threats against China, Mexico, and Canada have also led to whipsawing in agricultural markets, erasing early-year gains in corn and soybeans and pressuring commodity-focused hedge funds, while short positions in the Japanese yen – a consensus trade – have been squeezed as renewed concerns over the US economy drove a dollar decline.

The pain has been widespread, affecting both time-series momentum (which follows price trends) and cross-sectional momentum (which bets on relative outperformance within asset classes). According to Hedge Fund Research, 50 of 86 fast-money hedge fund indexes posted losses in February.

Even some of the biggest multi-manager hedge funds, which typically seek uncorrelated returns, struggled as crowded trades unwound. Mulvaney Capital Management, a trend-following fund that surged 83% in 2024, lost 13% in February. Meanwhile, Transtrend’s enhanced risk trend strategy dropped 10% amid commodity market volatility.

Momentum-driven hedge funds are facing a brutal start to 2025 as shifting economic conditions and geopolitical tensions trigger sharp reversals in previously high-flying trades, according to a report by Bloomberg.

The once-reliable strategy of riding market trends – favouring US tech stocks and betting on US economic outperformance – has been upended, leading to widespread losses across systematic and discretionary hedge funds.

The report cites Societe Generale’s CTA Index as showing that trend-following hedge funds, which typically trade futures based on prevailing price movements, are down 4.3% year-to-date, marking their second-worst start to a year since 2014. Equity-focused momentum strategies have suffered even steeper drawdowns, with one gauge falling 21% in just four weeks up to 10 March, one of the most abrupt declines on record.

The turbulence has also hit exchange-traded funds (ETFs) tracking momentum trades, with BlackRock’s $14bn iShares MSCI USA Momentum Factor ETF seeing $800m in outflows, the largest single liquidation in two years, as investor sentiment toward high-priced US equities soured.

“You’ve got de-risking at the same time as fundamental weakening, at the same time as geopolitical uncertainty,” said Adam Singleton, CIO of external alpha at Man Group, the world’s largest listed hedge fund. “When all of that converges, momentum strategies take a hit.”

Momentum strategies, which profit from extended trends in asset prices, have been caught off guard by sudden reversals across a range of asset classes with once-dominant AI and tech names seeing pullbacks as interest rate concerns and trade risks mount.

The White House’s tariff threats against China, Mexico, and Canada have also led to whipsawing in agricultural markets, erasing early-year gains in corn and soybeans and pressuring commodity-focused hedge funds, while short positions in the Japanese yen – a consensus trade – have been squeezed as renewed concerns over the US economy drove a dollar decline.

The pain has been widespread, affecting both time-series momentum (which follows price trends) and cross-sectional momentum (which bets on relative outperformance within asset classes). According to Hedge Fund Research, 50 of 86 fast-money hedge fund indexes posted losses in February.

Even some of the biggest multi-manager hedge funds, which typically seek uncorrelated returns, struggled as crowded trades unwound. Mulvaney Capital Management, a trend-following fund that surged 83% in 2024, lost 13% in February. Meanwhile, Transtrend’s enhanced risk trend strategy dropped 10% amid commodity market volatility.

Hedge fund performance dipped last month with a weighted average return of -0.3% after a strong start to the year, with several strategy types – including commodity and equity strategies – experiencing a negative month, according to the latest data from asset servicer Citco.

Nonetheless, YTD the weighted average return for hedge funds still stood at 3.7%, and demand from investors was strong, with inflows climbing month-on-month.

All-in-all, some 55% of hedge funds administered by Citco achieved positive returns in February 2025.

Global macro funds led the way with a weighted average return of 2.2%, followed by event-driven funds at 0.2%. All other funds were negative, with a multi-strategy funds performing worst with a weighted average return of -0.7%.

Asset under administration categories also showed diminished performances across the board, with mid-sized funds performing the best. Those with AUA between $500m and $1bn saw a 0.3%, while funds with $1bn to $3bn in assets were up 0.1%. The largest funds, with over $3bn, performed worst, achieving -0.6% weighted average return.

The rate of return spread rose as the difference between 90th and 10th percentile fund returns fell back to 7.4%, from 8.5% in January.

In terms of net inflows, February was a strong month, reaching $3.1bn overall, as investor demand continued.

Funds in the Americas ($2.7bn) and Europe ($1.5bn) both saw positive net inflows in February; with a net outflow of $1.2bn in Asia.

Treasury payments processed by Citco, meanwhile, came in at over 50,000 once again, maintaining the strong start to the year, with a 14% year-on-year increase from February 2024 to reach 53,765.

Hedge fund performance dipped last month with a weighted average return of -0.3% after a strong start to the year, with several strategy types – including commodity and equity strategies – experiencing a negative month, according to the latest data from asset servicer Citco.

Nonetheless, YTD the weighted average return for hedge funds still stood at 3.7%, and demand from investors was strong, with inflows climbing month-on-month.

All-in-all, some 55% of hedge funds administered by Citco achieved positive returns in February 2025.

Global macro funds led the way with a weighted average return of 2.2%, followed by event-driven funds at 0.2%. All other funds were negative, with a multi-strategy funds performing worst with a weighted average return of -0.7%.

Asset under administration categories also showed diminished performances across the board, with mid-sized funds performing the best. Those with AUA between $500m and $1bn saw a 0.3%, while funds with $1bn to $3bn in assets were up 0.1%. The largest funds, with over $3bn, performed worst, achieving -0.6% weighted average return.

The rate of return spread rose as the difference between 90th and 10th percentile fund returns fell back to 7.4%, from 8.5% in January.

In terms of net inflows, February was a strong month, reaching $3.1bn overall, as investor demand continued.

Funds in the Americas ($2.7bn) and Europe ($1.5bn) both saw positive net inflows in February; with a net outflow of $1.2bn in Asia.

Treasury payments processed by Citco, meanwhile, came in at over 50,000 once again, maintaining the strong start to the year, with a 14% year-on-year increase from February 2024 to reach 53,765.

Digital asset investment products saw a fifth consecutive week of outflows last week, totalling $1.7bn, and bringing the total outflows over this negative run to $6.4bn, according to the latest Digital Assets Fund Flows Weekly report from CoinShares.

Bitcoin saw a further $978m outflows, bringing total outflows over the last five weeks to $5.4bn.

Binance meanwhile, saw almost all its AuM wiped out by a seed investor exit, leaving the firm with just $15m in assets under management.

Digital asset investment products saw a fifth consecutive week of outflows last week, totalling $1.7bn, and bringing the total outflows over this negative run to $6.4bn, according to the latest Digital Assets Fund Flows Weekly report from CoinShares.

Bitcoin saw a further $978m outflows, bringing total outflows over the last five weeks to $5.4bn.

Binance meanwhile, saw almost all its AuM wiped out by a seed investor exit, leaving the firm with just $15m in assets under management.

Hedge fund giant Citadel has hired John Szatmary, a longtime Google engineering leader, as its new Head of Product Security. Szatmary, who is based in New York, has over eight years of experience in the tech sector, according to a report by eFinancial Careers.

At Google, Szatmary held senior engineering management roles, describing his responsibilities as evolving from an engineer “with an idea” to a “more senior engineering manager, director-like” position — focused on “preventing badness both internally and externally.”

Now at Citadel, his mission is straightforward: “keeping secrets secret.” The firm has declined to comment on the appointment, keeping in line with its reputation for discretion.

Szatmary’s move follows a broader trend of hedge funds recruiting top tech talent as firms increasingly rely on cutting-edge security, data science, and artificial intelligence to maintain a competitive edge. While Citadel’s hiring strategy remains largely under wraps, Szatmary’s background in security and risk mitigation suggests a growing emphasis on cybersecurity and proprietary data protection in the hedge fund industry.

Hedge fund giant Citadel has hired John Szatmary, a longtime Google engineering leader, as its new Head of Product Security. Szatmary, who is based in New York, has over eight years of experience in the tech sector, according to a report by eFinancial Careers.

At Google, Szatmary held senior engineering management roles, describing his responsibilities as evolving from an engineer “with an idea” to a “more senior engineering manager, director-like” position — focused on “preventing badness both internally and externally.”

Now at Citadel, his mission is straightforward: “keeping secrets secret.” The firm has declined to comment on the appointment, keeping in line with its reputation for discretion.

Szatmary’s move follows a broader trend of hedge funds recruiting top tech talent as firms increasingly rely on cutting-edge security, data science, and artificial intelligence to maintain a competitive edge. While Citadel’s hiring strategy remains largely under wraps, Szatmary’s background in security and risk mitigation suggests a growing emphasis on cybersecurity and proprietary data protection in the hedge fund industry.

UBS Group AG is closing its outsourced trading desk, one of the largest such offerings on Wall Street, as it refocuses its global markets strategy. The bank has begun informing clients of the decision, giving them three months to find an alternative provider, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter AS highlighting that despite shutting down its outsourced trading business, UBS will maintain its execution hub, ensuring continued trading support for its institutional clients. A UBS spokesperson emphasised the firm’s commitment to growth and servicing clients through its global markets division.

Outsourced trading desks have become a critical resource for hedge funds and asset managers, offering execution support during peak periods or even serving as a full replacement for in-house trading teams. As margin pressures mount due to the shift toward passive investing, many funds have turned to outsourcing solutions to reduce costs and improve efficiency.

UBS was a major player in outsourced trading, serving around 100 clients, according to The Trade. The firm was ranked highly in client satisfaction, with half of respondents in The Trade’s Outsourced Trading Survey rating UBS’s service as excellent.

UBS Group AG is closing its outsourced trading desk, one of the largest such offerings on Wall Street, as it refocuses its global markets strategy. The bank has begun informing clients of the decision, giving them three months to find an alternative provider, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter AS highlighting that despite shutting down its outsourced trading business, UBS will maintain its execution hub, ensuring continued trading support for its institutional clients. A UBS spokesperson emphasised the firm’s commitment to growth and servicing clients through its global markets division.

Outsourced trading desks have become a critical resource for hedge funds and asset managers, offering execution support during peak periods or even serving as a full replacement for in-house trading teams. As margin pressures mount due to the shift toward passive investing, many funds have turned to outsourcing solutions to reduce costs and improve efficiency.

UBS was a major player in outsourced trading, serving around 100 clients, according to The Trade. The firm was ranked highly in client satisfaction, with half of respondents in The Trade’s Outsourced Trading Survey rating UBS’s service as excellent.

Bridgewater Associates’ Pure Alpha II fund has surged 11.3% year-to-date, capitalising on market turbulence triggered by President Donald Trump’s trade policies, according to a report by Bloomberg citing a source familiar with the fund’s performance.

The fund, which trades across stocks, bonds, currencies, and commodities, saw its gains accelerate in early March, a period when the S&P 500 dropped 5.3% and all G7 currencies appreciated against the US dollar.

Bridgewater’s performance comes as some of its macro hedge fund rivals have struggled. Brevan Howard’s $11.7bn Master Fund slid 1% in early March, extending its year-to-date loss to 5.4%, while DE Shaw’s Oculus fund, which specialises in macro trading, declined 4.4% as of 7 March.

The fund’s 2024 performance mirrors its 11.3% return last year, the best since 2018. However, Bridgewater still trailed some of the largest macro-focused hedge funds in 2023, highlighting the competitive nature of the sector.

Bridgewater Associates’ Pure Alpha II fund has surged 11.3% year-to-date, capitalising on market turbulence triggered by President Donald Trump’s trade policies, according to a report by Bloomberg citing a source familiar with the fund’s performance.

The fund, which trades across stocks, bonds, currencies, and commodities, saw its gains accelerate in early March, a period when the S&P 500 dropped 5.3% and all G7 currencies appreciated against the US dollar.

Bridgewater’s performance comes as some of its macro hedge fund rivals have struggled. Brevan Howard’s $11.7bn Master Fund slid 1% in early March, extending its year-to-date loss to 5.4%, while DE Shaw’s Oculus fund, which specialises in macro trading, declined 4.4% as of 7 March.

The fund’s 2024 performance mirrors its 11.3% return last year, the best since 2018. However, Bridgewater still trailed some of the largest macro-focused hedge funds in 2023, highlighting the competitive nature of the sector.

Polymer Capital Management, a Hong Kong-based hedge fund with $4bn in assets, is set to launch two Japan-focused funds this year, capitalising on growing investor demand for the world’s third-largest stock market, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as confirming the plan, which aligns Polymer with a broader trend of hedge funds increasing their presence in Japan, as global investors seek exposure to corporate reforms, a rebounding economy, and a strong semiconductor sector.

Polymer’s first new fund will be a $500m equity long-short strategy, allocating capital across its 30 portfolio managers. This strategy will largely mirror its Japanese investments within the flagship Polymer Asia Fund, two sources confirmed.

The second vehicle will be a long-only equity fund, led by Tokyo-based investment veteran Daisuke Nakayama, who previously ran JPMorgan Asset Management’s Japan fund. Since joining Polymer in September 2023, Nakayama’s portfolio has delivered returns exceeding 20% over the TOPIX benchmark, a source noted.

Despite recent market turbulence and global trade uncertainties, hedge funds are doubling down on Japan. A BNP Paribas report found that 20% of surveyed investors plan to increase their hedge fund exposure in the country in 2025. Some 25 new Japan-focused hedge funds have either launched or are in the pipeline since 2024, covering activist, market-neutral, and fundamental equity strategies, according to reports.

Founded in 2019 by former Point72 Asia head Angus Wai, Polymer has quickly emerged as one of Asia’s largest hedge fund platforms, backed by alternative investment giant PAG.
The firm launched its first single-country fund in April 2024, focused on China A-shares, and now operates six offices across Hong Kong, Shanghai, Singapore, Sydney, Taipei, and Tokyo. Its main market-neutral Polymer Asia Fund returned 11.6% in 2024.

Polymer Capital Management, a Hong Kong-based hedge fund with $4bn in assets, is set to launch two Japan-focused funds this year, capitalising on growing investor demand for the world’s third-largest stock market, according to a report by Reuters.

The report cites unnamed sources familiar with the matter as confirming the plan, which aligns Polymer with a broader trend of hedge funds increasing their presence in Japan, as global investors seek exposure to corporate reforms, a rebounding economy, and a strong semiconductor sector.

Polymer’s first new fund will be a $500m equity long-short strategy, allocating capital across its 30 portfolio managers. This strategy will largely mirror its Japanese investments within the flagship Polymer Asia Fund, two sources confirmed.

The second vehicle will be a long-only equity fund, led by Tokyo-based investment veteran Daisuke Nakayama, who previously ran JPMorgan Asset Management’s Japan fund. Since joining Polymer in September 2023, Nakayama’s portfolio has delivered returns exceeding 20% over the TOPIX benchmark, a source noted.

Despite recent market turbulence and global trade uncertainties, hedge funds are doubling down on Japan. A BNP Paribas report found that 20% of surveyed investors plan to increase their hedge fund exposure in the country in 2025. Some 25 new Japan-focused hedge funds have either launched or are in the pipeline since 2024, covering activist, market-neutral, and fundamental equity strategies, according to reports.

Founded in 2019 by former Point72 Asia head Angus Wai, Polymer has quickly emerged as one of Asia’s largest hedge fund platforms, backed by alternative investment giant PAG.
The firm launched its first single-country fund in April 2024, focused on China A-shares, and now operates six offices across Hong Kong, Shanghai, Singapore, Sydney, Taipei, and Tokyo. Its main market-neutral Polymer Asia Fund returned 11.6% in 2024.