A senior former portfolio manager from Two Sigma Investments is preparing to launch a new Asia-focused quantitative hedge fund, with early backing from Blackstone Inc signalling continued investor appetite for established quant talent and systematic strategies, according to a report by Bloomberg.
Jinger Zhao, who spent nearly two decades at Two Sigma and most recently led Asia-Pacific investment strategies, is developing z Star Research, a market-neutral equity platform targeting Asian markets, according to people familiar with the matter. The fund is expected to begin trading in the second quarter of next year once data infrastructure, modelling systems and execution capabilities are fully in place.
Blackstone’s absolute return platform is said to be in discussions to anchor the launch with an initial commitment of around $300m, reflecting a broader trend of large institutional allocators seeding hedge fund startups with proven track records and strong quantitative pedigree.
The strategy will focus on systematic, market-neutral equity trading across Asia, a segment that has attracted growing investor interest as allocators seek diversification away from crowded US equity and macro exposures. Quantitative hedge funds and multi-strategy platforms remain among the most in-demand segments for institutional capital, supported by strong recent performance dispersion and scalable infrastructure.
Zhao’s launch comes amid a gradual revival in hedge fund start-up activity after several years of muted formation rates. While capital raising remains competitive, managers with established institutional credibility are increasingly able to secure cornerstone allocations from large asset managers and sovereign-linked investors.
Industry data suggests a modest uptick in new fund creation globally, with hundreds of hedge funds launching annually as investor appetite stabilises following earlier volatility in performance cycles and liquidity conditions.
Before founding z Star Research, Zhao spent 18 years at Two Sigma, where she helped expand the firm’s Asia footprint and contributed to the development of market-neutral, long-only and futures strategies across the region. Her background in computer science and software engineering reflects the deep technical orientation common among leading quantitative portfolio managers.
