Key Takeaways
- • Blackstone is providing a $300 million initial commitment to anchor a new Asia-focused quantitative hedge fund being launched by Jinger Zhao, a former Managing Director at Two Sigma with 18 years of tenure at the firm.
- • The fund, branded as z Star, is expected to begin trading Asian equities in the second quarter of 2027, positioning it to capture demand for quantitative strategies in Asian markets.
- • Zhao has already recruited staff in Asia as part of fund setup, indicating active operational preparation ahead of the planned trading launch.
- • The backing underscores continued institutional appetite for quantitative investment strategies and reflects Blackstone's confidence in both the Asia quant space and Zhao's track record in systematic investing.
Summary
Blackstone is backing the launch of a new Asia-focused quantitative hedge fund founded by Jinger Zhao, a veteran of Two Sigma who spent 18 years at the prominent quant firm. Blackstone's absolute return platform is providing approximately $300 million in seed funding to anchor the venture, positioning the new firm as a significant player in the emerging Asia quant hedge fund space.
Zhao's new fund, z Star, is structured to focus on Asian equities using quantitative investment approaches. The fund is expected to commence trading operations in the second quarter of 2027, providing a timeline for institutional investors and stakeholders to assess the firm's strategy and positioning. Zhao has already begun building out operational infrastructure by recruiting staff across Asian markets, signaling serious execution on the fund launch plans.
The transaction reflects broader market dynamics favoring quantitative strategies within institutional allocations. Blackstone's substantial $300 million commitment suggests confidence both in Zhao's leadership capabilities—grounded in her extensive experience at Two Sigma, one of the world's largest quantitative asset managers—and in the scalability of quant-driven investing in Asian equity markets. The announcement also highlights sustained institutional appetite for alternative investment vehicles with systematic, data-driven approaches, particularly in geographies where such strategies remain relatively nascent compared to developed markets.
Zhao's new fund, z Star, is structured to focus on Asian equities using quantitative investment approaches. The fund is expected to commence trading operations in the second quarter of 2027, providing a timeline for institutional investors and stakeholders to assess the firm's strategy and positioning. Zhao has already begun building out operational infrastructure by recruiting staff across Asian markets, signaling serious execution on the fund launch plans.
The transaction reflects broader market dynamics favoring quantitative strategies within institutional allocations. Blackstone's substantial $300 million commitment suggests confidence both in Zhao's leadership capabilities—grounded in her extensive experience at Two Sigma, one of the world's largest quantitative asset managers—and in the scalability of quant-driven investing in Asian equity markets. The announcement also highlights sustained institutional appetite for alternative investment vehicles with systematic, data-driven approaches, particularly in geographies where such strategies remain relatively nascent compared to developed markets.
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