Polymer Capital Expands into Japan with Two New Hedge Funds

Polymer Capital Expands into Japan with Two New Hedge Funds

Polymer Capital Management, a $4 billion multi-manager hedge fund based in Hong Kong, is launching two Japan-focused funds in 2024 to capitalize on growing investor interest in the world’s third-largest stock market.

One fund will follow an equity long/short strategy with a $500 million target and deploy capital across 30 portfolio managers. This fund will largely mirror Polymer’s existing Japan investments within its flagship Polymer Asia Fund. The second fund will be a long-only equity fund led by Tokyo-based investment veteran Daisuke Nakayama, formerly of J.P. Morgan Asset Management. Since joining Polymer in September 2023, Nakayama’s portfolio has outperformed the TOPIX benchmark by over 20%.

Polymer's expansion aligns with rising global interest in Japan, driven by its economic recovery, corporate reforms, and a strong semiconductor sector. According to BNP Paribas, 20% of surveyed investors plan to increase hedge fund allocations in Japan in 2025. Experts forecast a surge in new Japan-focused hedge funds, with at least 25 launches in 2024-2025.

Founded in 2019 by ex-Point72 Asia head Angus Wai and backed by alternative investment giant PAG, Polymer has rapidly become a major player in Asia’s hedge fund space. Its flagship market-neutral Polymer Asia Fund delivered an 11.6% return in 2024. The firm has also expanded into single-country funds, launching a China A-shares Equity Fund in April 2024.

With offices in Hong Kong, Shanghai, Singapore, Sydney, Taipei, and Tokyo, Polymer is doubling down on Japan, seeing it as a prime opportunity despite market volatility. A spokesperson for Polymer declined to comment on the fund launches.