Key Takeaways
- • Jinger Zhao, a senior former portfolio manager from Two Sigma with nearly two decades of experience leading Asia-Pacific investment strategies, is launching z Star Research, a market-neutral equity hedge fund focused on Asian markets.
- • Blackstone's absolute return platform is in discussions to anchor the fund with an initial $300 million commitment, signalling institutional appetite for established quant talent and systematic trading strategies.
- • The fund is expected to begin trading in Q2 2027 once data infrastructure, modelling systems, and execution capabilities are fully operational.
- • z Star Research will employ systematic, market-neutral equity trading across Asia, targeting investor demand for diversification away from crowded US equity and macro exposures.
- • The launch reflects a broader revival in hedge fund startup formation, with established managers now increasingly able to secure cornerstone allocations from large institutional allocators and asset managers.
Summary
Jinger Zhao, a veteran quantitative portfolio manager departing Two Sigma Investments after nearly two decades, is preparing to launch z Star Research, an Asia-focused quantitative hedge fund backed by significant institutional capital. Blackstone's absolute return platform is in active discussions to anchor the fund with an initial commitment of approximately $300 million, according to Bloomberg reporting. The commitment underscores continued investor appetite for hedge fund managers with proven institutional credibility and systematic trading expertise.
Zhao's role at Two Sigma centered on developing and leading Asia-Pacific investment strategies, positioning her with substantial domain expertise in Asian equities and quantitative methodologies. z Star Research will operate as a market-neutral equity platform targeting systematic trading opportunities across Asian markets. This strategic focus reflects growing institutional investor interest in Asia-focused strategies as allocators seek to diversify away from concentrated positions in US equities and macro-driven exposures. Market-neutral approaches have gained traction among institutional allocators, particularly given recent performance dispersion and the scalability of quantitative infrastructure.
The fund is scheduled to commence trading operations in the second quarter of 2027, pending full buildout of supporting technology infrastructure, data systems, quantitative modelling capabilities, and trade execution infrastructure. Blackstone's participation as an anchor investor signals confidence in both Zhao's investment track record and the viability of the strategy within the current market environment.
This launch occurs amid a gradual resurgence in hedge fund formation activity following several years of subdued startup rates in the alternatives industry. While capital-raising environments remain competitive, managers with established institutional pedigree and strong performance histories have demonstrated increased ability to secure cornerstone allocations from major asset managers, sovereign wealth funds, and family offices. Quantitative hedge funds and multi-strategy platforms remain among the most sought-after segments for institutional capital deployment, supported by demonstrated performance advantages and operational scalability.
Zhao's role at Two Sigma centered on developing and leading Asia-Pacific investment strategies, positioning her with substantial domain expertise in Asian equities and quantitative methodologies. z Star Research will operate as a market-neutral equity platform targeting systematic trading opportunities across Asian markets. This strategic focus reflects growing institutional investor interest in Asia-focused strategies as allocators seek to diversify away from concentrated positions in US equities and macro-driven exposures. Market-neutral approaches have gained traction among institutional allocators, particularly given recent performance dispersion and the scalability of quantitative infrastructure.
The fund is scheduled to commence trading operations in the second quarter of 2027, pending full buildout of supporting technology infrastructure, data systems, quantitative modelling capabilities, and trade execution infrastructure. Blackstone's participation as an anchor investor signals confidence in both Zhao's investment track record and the viability of the strategy within the current market environment.
This launch occurs amid a gradual resurgence in hedge fund formation activity following several years of subdued startup rates in the alternatives industry. While capital-raising environments remain competitive, managers with established institutional pedigree and strong performance histories have demonstrated increased ability to secure cornerstone allocations from major asset managers, sovereign wealth funds, and family offices. Quantitative hedge funds and multi-strategy platforms remain among the most sought-after segments for institutional capital deployment, supported by demonstrated performance advantages and operational scalability.
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