Hong Kong's Kuark prepares AI-focused Asia hedge fund

Kuark Capital, a Hong Kong-based asset manager, is preparing a new hedge fund focused on Asian AI-related stocks, particularly in Taiwan and Japan.

The firm has secured at least US$400 million from investors ahead of the launch.

The fund will use a low-net equity long-short strategy, betting on both rising and falling stocks while limiting overall market exposure.

Investors are seeking greater exposure to Asia’s AI supply chain, from chipmaking to materials.

Asia equity long-short funds returned 10% on average in the first four months of 2026 versus 5.2% globally, according to Morgan Stanley prime brokerage data.

Founder Kyle Su previously managed an equity portfolio of about US$1 billion at Hong Kong hedge fund Kadensa Capital.

Kuark has hired Hiro Ikeda, whose past roles include Optimas Capital, Fidelity, and T. Rowe Price, as research director.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Kuark Capital joins the surge into hedge fund bets on Asian tech

Global hedge funds recently bought Asian stocks at the fastest pace in more than a decade, fueled by the AI boom 1.
Most of that money went to chipmakers and hardware groups in South Korea, Japan and Taiwan. Hedge funds’ net exposure to those markets is at its highest level since Morgan Stanley began tracking it in 2010 1.
That approach has paid off for other managers.
Sino Vision’s fund rose 25% in the first half of 2023. The Hong Kong hedge fund manager said it focused its AI bets on Taiwan, which it called “a key beneficiary as an epicentre of the AI ecosystem” 2.

Private money may clash with efforts to remake supply chains

Heavy buying in Asia’s listed tech companies strengthens the region’s lead. Around 90% of the global technology supply chain sits there, said Hussein Sacoor, partner at Tekne Capital 1.
That investor push runs against government plans to bring more manufacturing back home.
In a U.S.-Taiwan tariff deal, Taiwan companies would invest US$250 billion in U.S. semiconductor, energy and AI production, said Howard Lutnick, U.S. Commerce Secretary 3. That sum includes US$100 billion already committed by Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, in 2025 3.
Governments want more spread-out supply chains for resilience. Investors keep backing Asia’s efficient network, which makes it harder to shift factories closer to home 1.