HONG KONG, May 19 - Kuark Capital, the Hong Kong-based firm run by Taiwanese portfolio manager Kyle Su, is preparing to launch a hedge fund focused on Asian companies exposed to artificial intelligence, according to people familiar with the plans.
One of those people said the firm has already secured at least $400 million in capital commitments ahead of the fund's formal debut. The three people who provided details asked not to be named because they were not authorised to speak publicly. Attempts to reach Su were not answered.
The new vehicle will concentrate investment efforts on Taiwan and Japan, markets viewed by the firm as central to the AI supply chain. Kuark Capital plans to pursue a low-net-equity long-short strategy - seeking both long and short ideas while keeping net market exposure constrained - a structure the firm believes helps protect against downside risks amid volatile conditions.
Investor appetite for Asian technology companies, particularly those tied to AI, has strengthened in recent months. Fund flows and performance trends have reflected that, with Asia-focused long-short equity funds recording outsized gains early in the year. Data cited by Kuark show that Asia equity long-short strategies delivered an average 10% return in the first four months of the year, outstripping a 5.2% average gain for long-short funds globally. That relative outperformance was driven in part by a concentration in semiconductor stocks within Asia-focused funds.
Kuark's investor presentation highlights Su's background and local networks as competitive advantages. The presentation states that Su previously managed an equity portfolio of roughly $1 billion at Kadensa Capital for about nine years. Kadensa Capital is described in the presentation as a Hong Kong-based hedge fund with an Asian investment focus. Kuark also cites Su's engineering background as a factor that helps the team source investment ideas across the region.
The firm has appointed Hiro Ikeda as director of research. Ikeda is described in the presentation as a Japanese-Taiwanese investor with prior roles at Optimas Capital, Fidelity and T. Rowe Price. The presentation notes Ikeda ran a low-net mandate at Optimas Capital in Hong Kong for four years; Optimas received an allocation from New York-based Millennium Management last year. Kuark's materials and the people familiar with the matter said Ikeda did not respond to requests for comment.
Kuark's choice of strategy reflects a broader trend among managers looking to balance opportunities in tech and semiconductors with risk management. Market participants say low-net approaches have become more popular as fund managers aim to limit market exposure while capturing both upside and downside stock-specific opportunities.
Correction: The hedge fund name is Kadensa, not Kandensa, as noted in Kuark Capital's presentation.