Key Takeaways
- • Hong Kong-based Ovata Capital Management, a $1.5 billion hedge fund, is ceasing operations as founder and Chief Investment Officer James Chen and approximately 40 employees join ExodusPoint Capital Management in the third quarter of 2026.
- • ExodusPoint, a $14.5 billion US multistrategy firm, is expanding its Asian equities trading capabilities through the acquisition of Ovata's team, positioning Chen as head of Asia equities for the region.
- • Ovata's diverse strategy focus—spanning equity long-short, event-driven, relative value, systematic, and arbitrage trading—differentiates the acquired team from typical Asian hedge funds concentrated solely on stock selection; Ovata returned 10% through May 2026.
- • ExodusPoint recently secured $2 billion in fresh capital, including commitments from Abu Dhabi Investment Council (an independent unit of Mubadala Investment Co.), bolstering its capacity for regional expansion and demonstrating strong investor confidence following an 18% gain in 2025 and 4% return in the first five months of 2026.
- • Chen brings over 25 years of trading experience across banking and hedge fund sectors, adding significant institutional expertise to ExodusPoint's regional operations, which already span eight global offices including Hong Kong, Singapore, and Tokyo.
Summary
Ovata Capital Management, the Hong Kong-based hedge fund managing $1.5 billion in assets, will wind down operations as its founder James Chen and the majority of its approximately 40 employees transition to ExodusPoint Capital Management. Chen is expected to join ExodusPoint in the third quarter as head of equities for the Asia region, marking a significant consolidation in the regional hedge fund landscape.
The move represents a strategic expansion by ExodusPoint, a $14.5 billion US multistrategy firm founded in 2017 by former Millennium Management executives Michael Gelband and Hyung Lee. ExodusPoint has positioned itself as a growing player in Asian markets, currently operating approximately 100 portfolio manager teams across eight offices worldwide, including presence in Hong Kong, Singapore, and Tokyo. The firm's Asia macro trading unit is led by Steve Xu. By absorbing Ovata's team, ExodusPoint will materially strengthen its regional equities capability.
Ovata's strategic value to ExodusPoint extends beyond team talent. The fund employs a diversified approach across equity long-short, event-driven, relative value, systematic, and arbitrage strategies—a broader portfolio than many Asian hedge funds that concentrate primarily on stock selection. Through May 2026, Ovata posted a 10% return. This multi-strategy orientation will enhance ExodusPoint's existing capabilities as the larger firm continues to build scale in the region.
ExodusPoint's recent capital position further underscores the firm's momentum. The multistrategy manager secured $2 billion in fresh capital in a fundraising round that included Abu Dhabi Investment Council, an independent unit of sovereign wealth fund Mubadala Investment Co. This capital influx follows strong performance: ExodusPoint delivered an 18% gain in 2025 and a 4% return in the first five months of 2026. Chen's addition, leveraging his 25+ years of experience across banking and hedge fund trading, adds institutional depth to the regional operation at a pivotal growth moment.
The move represents a strategic expansion by ExodusPoint, a $14.5 billion US multistrategy firm founded in 2017 by former Millennium Management executives Michael Gelband and Hyung Lee. ExodusPoint has positioned itself as a growing player in Asian markets, currently operating approximately 100 portfolio manager teams across eight offices worldwide, including presence in Hong Kong, Singapore, and Tokyo. The firm's Asia macro trading unit is led by Steve Xu. By absorbing Ovata's team, ExodusPoint will materially strengthen its regional equities capability.
Ovata's strategic value to ExodusPoint extends beyond team talent. The fund employs a diversified approach across equity long-short, event-driven, relative value, systematic, and arbitrage strategies—a broader portfolio than many Asian hedge funds that concentrate primarily on stock selection. Through May 2026, Ovata posted a 10% return. This multi-strategy orientation will enhance ExodusPoint's existing capabilities as the larger firm continues to build scale in the region.
ExodusPoint's recent capital position further underscores the firm's momentum. The multistrategy manager secured $2 billion in fresh capital in a fundraising round that included Abu Dhabi Investment Council, an independent unit of sovereign wealth fund Mubadala Investment Co. This capital influx follows strong performance: ExodusPoint delivered an 18% gain in 2025 and a 4% return in the first five months of 2026. Chen's addition, leveraging his 25+ years of experience across banking and hedge fund trading, adds institutional depth to the regional operation at a pivotal growth moment.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.