Quantitative hedge fund Capital Fund Management has opened a new office in Shanghai, marking a further step in the firm’s expansion into China as its assets under management rise above $27bn, according to a report by Bloomberg.
The hedge fund’s new office, located in the Citigroup Tower, began operations earlier this month with a small team focused initially on data and engineering. The goal is to improve the firm’s ability to trade Chinese markets more effectively, according to president Philippe Jordan.
CFM is also exploring longer-term plans to establish onshore investment vehicles for local clients, alongside feeder structures that would allow China-based investors to access its offshore strategies.
Jordan described China as a major long-term diversification opportunity, noting that the firm believes a local presence is increasingly important to fully participate in the market’s growth.
The move places CFM alongside a growing group of international hedge funds building out operations in China, including Marshall Wace, DE Shaw & Co, and Two Sigma Investments. The trend reflects continued global interest in accessing Chinese onshore and offshore markets despite regulatory and operational complexity.
Investor appetite for quantitative strategies has also strengthened more broadly, with surveys indicating increasing allocations to systematic equity and multi-strategy quant approaches heading into 2026.
CFM, which now manages roughly $27bn in assets compared with about $19bn late last year, has continued to grow despite returning $2bn from its flagship Stratus fund to manage capacity.
Performance across its strategies has remained positive year-to-date, with its Stratus fund posting mid-single-digit gains in the early part of the year and its Cumulus fund also trending higher, according to people familiar with the results.
