Singapore-Based Hedge Fund Keystone Grows To $2.6-B

Two-year-old Keystone Investors Pte has seen assets swell above $2.6 billion, said a person with knowledge of the matter, a rarity among pandemic-era Asia hedge fund startups, Bei Hu reported for Bloomberg News.

The Singapore-based firm has decided to stop accepting fresh money, having received enough investor commitments to take assets to $3 billion.

The Singapore-based firm has decided to stop accepting fresh money, having received enough investor commitments to take assets to $3 billion, its targeted cap for now, the person added, asking not to be identified discussing confidential information.

Chief investment officer Liu Xuan declined to comment. Keystone’s ability to attract funds stands out against a sea of China-focused hedge funds that have been reeling from the country’s crackdowns on tech, real estate, and education platforms.

Capital raising by independent Asia managers has also been hit by pandemic-era travel restrictions, mounting geopolitical tensions, and China’s economic slowdown.

While Keystone trades around Asia themes, the firm touts its expertise on China. It hasn’t recorded an annual loss since its inception and returned 20.2% in the first half, five times that of the average peer focused on Asian stocks, according to a Eurekahedge Pte gauge.

Liu’s fundraising success comes even as global investors gravitate toward pod-shops that employ teams of traders using different hedge fund strategies, instead of cherry-picking managers themselves.