(Bloomberg) -- Multistrategy hedge fund startup Arrowpoint Investment Partners has increased assets under management to $1.1 billion after a 3% return in November, the best monthly result since it started trading in July, according to a person with knowledge of the matter.
The firm, which began with $500 million, is expecting as much as $400 million of additional capital in the first half of 2025, the person said, asking not to be identified discussing private information. Chief Operating Officer Andrew Freyre-Sanders declined to comment.
Early gains by new hedge funds are pivotal in an industry where larger pod-shops like Millennium Management have absorbed the lion’s share of fresh inflows in recent years. Underscoring the competition for capital, 55 such firms saw combined assets drop for the first time in seven years in the 12 months through June, according to a Goldman Sachs Group Inc. report.
Arrowpoint is led by Jonathan Xiong, a former Asia co-chief executive officer of Izzy Englander’s $70 billion Millennium. One of the largest Asia hedge fund startups in recent years, it counts Canada Pension Plan Investment Board, Blackstone Inc. and a unit of Temasek Holdings Pte as its anchor investors. It trades with 17 investment teams spread between Singapore and Hong Kong, with five more teams hired who will start later.
The November return gave Arrowpoint a 1% return since its inception, said the person. While trading was profitable in four of the five months, such revenue was drowned out in the third quarter by fixed expenses as client money gradually flowed in. The November gain came after assets hit $1 billion by October, allowing it to make money on a larger pool of capital.
November also saw uncertainties tied to the US election receding, allowing investors to shift focus back to corporate and economic fundamentals. All four of Arrowpoint’s investment strategies — commodity, fixed-income macro, systematic and equities — made money against the backdrop, the person said.
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