Keystone Investors Pte, a two-year-old Singapore-based hedge fund, has experienced a significant asset increase, surpassing $2.6 billion. This marks notable growth among pandemic-era Asian hedge fund startups. According to a firm insider, Keystone has now halted new investments, having secured enough commitments to reach its $3 billion target cap. Keystone’s Chief Investment Officer, Liu Xuan, declined to comment.
Keystone’s fund-raising success is remarkable amidst the struggles of China-focused hedge funds, which have been impacted by the nation’s regulatory crackdowns on technology, real estate, and education sectors. The broader capital-raising environment for independent Asian managers has also suffered due to pandemic travel restrictions, rising geopolitical tensions, and China’s economic slowdown.
Despite these challenges, Keystone’s focus on Asia, particularly China, has proven advantageous. The firm has not reported an annual loss since its inception, and it achieved a 20.2% return in the first half of this year, significantly outperforming the average 4% return of its peers, as indicated by the Eurekahedge Pte gauge. Keystone’s performance and strategic decisions underscore its resilience and expertise in navigating the complex Asian market landscape.