Viridian Asset Management, the Hong Kong hedge fund founded by former Segantii Capital Management portfolio manager Pascal Guttieres, grew assets to $680m after attracting a new investor and generating strong returns during July’s market turmoil, according to a report by Bloomberg.
Viridian’s fund gained 2.65% last month, with roughly three-quarters of the return generated by equity capital markets trades, according to an investor update. The strategy is up 3.8% for the year through July.
The firm’s convertible bond strategy also recorded its best monthly performance since launch, generating gains from both new issues and secondary-market trading.
Viridian’s performance stands out against a difficult backdrop for Asian hedge funds. Regional equity long-short strategies suffered their worst month on record in July, with funds losing about 15% on average, according to estimates from Goldman Sachs prime brokerage. The losses followed a sharp reversal in AI-linked stocks after a strong first half of the year.
For Viridian, however, the volatility coincided with a record month for equity capital markets. IPOs, share placements and block trades involving companies across the region raised about $83bn in July, according to Bloomberg data.
Among Viridian’s successful trades was an arbitrage position involving SK Hynix’s US-listed American depositary receipts. The fund bet that the ADRs would command a 25% premium to the company’s Korean-listed shares, with restrictions on converting Korean shares into ADRs limiting the ability of arbitrageurs to close the valuation gap.
Viridian also participated in placements involving Chinese companies Z.AI and Shanghai Iluvatar CoreX Semiconductor, as well as block trades in Beijing Geekplus Technology following the expiration of lock-up restrictions on existing shareholders.
A hedged position in Z.AI proved profitable despite the stock ending July roughly 38% below the placement price.
Guttieres spent seven years as a portfolio manager at Segantii after previously working as a UBS banker. He launched Viridian in 2024 with $100m from Axa IM Prime, initially focusing on providing liquidity around equity capital markets transactions.
Segantii had built a strong reputation in Asian block trading under founder Simon Sadler, becoming a significant participant in share sales arranged by investment banks.
Guttieres left Segantii before the firm was charged in connection with allegations surrounding a 2017 block trade in Esprit Holdings. He has not been accused of wrongdoing.
Viridian expanded into convertible bonds last year, hiring Marc-Antoine Chaudet, a former JPMorgan and Citadel trader, to lead the strategy. The approach benefited in July from increased volatility in technology stocks and a strong rebound in Hong Kong equities, with the Hang Seng Index gaining 13% during the month.
The firm’s growth comes as Asia’s equity capital markets attract increasing interest from global hedge funds and proprietary trading firms. Regulatory changes in Japan and South Korea, alongside heavy investment by global technology companies, have helped drive a surge in issuance and secondary-market activity.
Firms including Jain Global and Jump Trading have recruited former Segantii personnel to develop equity capital markets businesses, while Qube Research & Technologies, Citadel and Hudson Bay Capital Management have also expanded in the area.
Viridian counts multi-strategy and multi-manager hedge funds among its clients, according to Guttieres. A new investor began allocating to the firm through a separately managed account on 1 August, helping lift assets to $680m.
