Ramesh Karthigesu, a former Marshall Wace executive and founder of Kaizen Capital Partners, is shutting down his Asia-focused hedge fund to join multi-strategy major Millennium Management, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that Karthigesu, who established Kaizen Capital four years ago in Hong Kong before relocating to Singapore, will join Millennium next year as a Senior Portfolio Manager, bringing his team with him. His decision was reportedly influenced by the broader opportunities a global investment giant could provide for his team.
Neither Millennium nor Kaizen Capital representatives responded to requests for comment.
Millennium, which has doubled its assets over the past six years to $70bn, has intensified its recruitment efforts, drawing talent from smaller firms. Meanwhile, Asia-Pacific hedge funds have faced increasing difficulties growing assets due to waning investor interest in China, one of the region’s largest markets.
Kaizen Capital, once among the most notable Asia hedge fund startups during the pandemic, has delivered impressive performance since its launch in April 2020. The fund achieved an annualised return of 15%, significantly outperforming the MSCI Asia-Pacific Index’s 10% gain during the same period.
Kaizen’s strategy centred on both bullish and bearish positions in Asia-Pacific equities. The fund notably gained 28% in 2022 during a regional downturn and posted a 20% increase in the first 10 months of 2024. However, it also faced challenges, including a 20% loss in 2023. By the end of last year, Kaizen managed $625m in assets, excluding additional client-owned accounts.
