Polymer Capital Management, a Hong Kong-based hedge fund with $4bn in assets, is set to launch two Japan-focused funds this year, capitalising on growing investor demand for the world’s third-largest stock market, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as confirming the plan, which aligns Polymer with a broader trend of hedge funds increasing their presence in Japan, as global investors seek exposure to corporate reforms, a rebounding economy, and a strong semiconductor sector.
Polymer’s first new fund will be a $500m equity long-short strategy, allocating capital across its 30 portfolio managers. This strategy will largely mirror its Japanese investments within the flagship Polymer Asia Fund, two sources confirmed.
The second vehicle will be a long-only equity fund, led by Tokyo-based investment veteran Daisuke Nakayama, who previously ran JPMorgan Asset Management’s Japan fund. Since joining Polymer in September 2023, Nakayama’s portfolio has delivered returns exceeding 20% over the TOPIX benchmark, a source noted.
Despite recent market turbulence and global trade uncertainties, hedge funds are doubling down on Japan. A BNP Paribas report found that 20% of surveyed investors plan to increase their hedge fund exposure in the country in 2025. Some 25 new Japan-focused hedge funds have either launched or are in the pipeline since 2024, covering activist, market-neutral, and fundamental equity strategies, according to reports.
Founded in 2019 by former Point72 Asia head Angus Wai, Polymer has quickly emerged as one of Asia’s largest hedge fund platforms, backed by alternative investment giant PAG.
The firm launched its first single-country fund in April 2024, focused on China A-shares, and now operates six offices across Hong Kong, Shanghai, Singapore, Sydney, Taipei, and Tokyo. Its main market-neutral Polymer Asia Fund returned 11.6% in 2024.
