Arrowpoint Investment Partners, a Singapore-based multi-strategy hedge fund backed by Blackstone, Canada Pension Plan Investment Board, and Temasek’s Seviora, generated strong gains in May by exploiting market dislocations across equities, currencies, and fixed income, according to a report by Business Times.
The report cites founder and CIO Jonathan Xiong as highlighting that the $1.1bn fund capitalised on extreme volatility sparked by tariff shocks and macro uncertainty – most notably in Asian FX markets and Australian rate curves – to post its best monthly performance since launch in July 2023, with a gain of over 3%. In contrast, multi-strategy peers were broadly flat, according to data from With Intelligence.
“Everything has got more volatile, but there are also opportunities that were so abundantly clear,” said Xiong, a former Asia co-CEO at Millennium Management, noting that Arrowpoint’s trades included non-deliverable forwards in Asia FX and curve trades in Australia, taking advantage of temporary mispricings.
While avoiding Japan’s super-long rate markets – where yields hit record highs – Xiong highlighted that Asia dislocations typically take longer to normalise due to lower liquidity relative to U.S. markets, creating extended arbitrage windows.
Arrowpoint, which now operates with 110 staff and over 20 trading pods, continues to see structural alpha opportunities across the region. Speaking at the Sohn Hong Kong Investment Leaders Conference, Xiong pitched a long China/short Japan “risk parity” trade, involving China stock index futures and five-year bonds versus equivalent Japanese assets.
He added that institutional allocators are increasingly seeking diversified exposure beyond the US, driving growing interest in Asia-based multi-strategy hedge funds.
