Keystone Investors, an Asian hedge fund that originated from Schonfeld Strategic Advisors, is making headlines with its decision to suspend subscriptions in April. This move comes after experiencing an impressive 160% increase in assets since its launch in 2022. The Singapore-based equity fund has surpassed $2 billion in assets under management following a recent round of fundraising this year. This decision to halt new investor subscriptions showcases Keystone’s comfort with its current size and stability.
Led by Liu Xuan, a seasoned China investor, Keystone has managed to secure investments from global investors during a period marked by fundraising challenges in Asia. This significant growth positions Keystone as one of the fastest-growing hedge fund startups in the region. This success stands in stark contrast to the $15.6 billion of net outflows observed in 2023 from hedge funds in Asia, as reported by fund services firm Citco. Keystone’s rapid asset growth serves as a signal that global investors are rekindling their interest in the region, particularly in anticipation of U.S. interest rate reductions, with a keen focus on specific fund managers.
Unlike many other China-centric hedge funds, Keystone implements a low-net strategy that involves both long and short bets on a diverse range of companies. This approach is designed to minimize correlations and enhance overall portfolio performance. Keystone’s success can be partially attributed to its investments in U.S. tech giant Nvidia (NASDAQ:NVDA) and Chinese e-commerce platform Pinduoduo (NASDAQ:PDD), as outlined in regulatory filings.
– Keystone’s flagship fund delivered a remarkable 20.5% return in 2023, following a 2.8% gain in 2022.
– In contrast, Asian hedge funds, including those in Japan, achieved an average return of 5.8% in 2023, according to data provider HFR.
Keystone Investors’ decision to suspend subscriptions reflects its strategic approach to sustainable growth and underscores the increasing interest of global investors in Asian markets. Through its unique investment strategy and impressive financial performance, Keystone has positioned itself as a prominent player in the competitive landscape of hedge funds in the region.