Singapore’s multi-strategy hedge fund Arrowpoint Investment Partners has successfully capitalized on market disruptions caused by global trade tariff shocks. The fund’s chief investment officer, Jonathan Xiong, said they expect more arbitrage opportunities ahead.
Since mid-April, Arrowpoint, which manages $1.1 billion, has taken advantage of extreme price dislocations in equities, currencies, and bond curves.
According to a source familiar with the matter, May was the fund’s best month since its launch last July, with gains exceeding 3%. This performance outpaced the average multi-strategy hedge fund, which remained flat in April, according to With Intelligence data.
Arrowpoint, backed by major investors including Blackstone, the Canada Pension Plan Investment Board, and Temasek’s Seviora, was Asia’s largest hedge fund startup last year. The firm now employs about 110 staff across more than 20 trading teams.
“Volatility has increased, but so have clear opportunities,” said Xiong, who previously served as Asia co-CEO of Millennium Management.
The fund profited from dislocations in Asian foreign exchange markets using non-deliverable forwards and exploited anomalies in the Australian interest rate curve following U.S. President Donald Trump’s tariff announcements.
Arrowpoint’s strategy focused on identifying temporary mispricing in assets, betting that prices would eventually normalize.
Xiong noted that price dislocations in Asia tend to last longer than in the U.S. due to lower market liquidity. However, Arrowpoint avoided Japan’s rate markets, where long-term bond yields hit record highs in May. He explained that the risk premium on Japan’s long bonds might be justified given a global repricing of bond term premiums.
At the Sohn Hong Kong Investment Leaders Conference, Xiong proposed a “risk parity” trade: going long on Chinese stock index futures and 5-year government bonds while shorting similar Japanese assets.
Investor interest in Asia-focused multi-strategy funds is growing amid concerns about heavy exposure to U.S. markets.
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