Jonathan Xiong, the former co-CEO of Millennium’s Asia operations, has launched a new hedge fund, Arrowpoint Investment Partners, which began trading on Monday with over $1bn in assets and more than 15 portfolio managers, according to a report by Business Insider.

Arrowpoint, which is operating from offices in Singapore and Hong Kong, enters a competitive market dominated by large multi-strategy managers including Citadel as well as Xiong’s former firm, Millennium.

The report cites an unnamed source as revealing that is aiming to differentiate its offering through its "top-down portfolio construction and robust infrastructure". Unlike many hedge funds that manage trading teams as separate entities, Arrowpoint integrates its strategies — including fundamental equities, quant, fixed income, and commodities — into an overall portfolio. The firm believes this approach allows portfolio managers to focus on capitalising when their strategies are favourable and mitigating losses when they are not.

Built as a multi-strategy firm from the outset, Arrowpoint is aiming to benefit from operating leverage, thanks to its custom-built technology and systems that accommodate every asset class. Older multi-strat funds by comparison often face higher costs and complexities when expanding into new asset classes.

With an initial $1bn in assets, Arrowpoint is already a significant player in the Asian hedge fund landscape. The fund plans to cap assets at around $4bn to $5bn to maintain manageable growth and operational efficiency. Additionally, Arrowpoint is set to open two new offices in the region, pending regulatory approvals and personnel agreements.