Segantii Capital Management (Segantii) is a

hedge fund A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as s ...

management firm based in

Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China (abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delta i ...

. The firm invests deploys a multi-strategy investment approach and is known as one of the biggest players in Asia for

block trade A block trade is a high-volume transaction in a security that is privately negotiated and executed outside of the open market for that security. Major broker-dealers often provide "block trading" services—sometimes known as "upstairs trading de ...

s. Its founder and owner is Simon Sadler, who also owns Blackpool Football Club.

Background

Segantii was founded in 2007 by Simon Sadler. Sadler was previously the head of Asian equity trading for HSBC Securities in Hong Kong. In 2008, when Asian hedge funds lost 20% due to the 2007–2008 financial crisis, Segantii had a return of 23.8%. In 2011, Segantii had a return of 40.75% when the Eurekahedge Asian index fell 7.4%. In 2014, after two straight years of underperformance, the firm was hit with the resignation of six employees including its Chief Operating Officer. The firm's flagship fund is the Asia-Pacific Equity Multi-Strategy Fund. The fund employs two strategies, relative value and

event-driven Event driven may refer to: The term event-driven refers to a methodology that focuses on events and event dependencies. Examples include * Event-driven finite-state machine, finite-state machine where the transition from one state to another ...

. In 2018, it posted a return of 11.36% and an annualized return of 17.6% over the past five years. According to former employees and counterparties, the culture at Segantii has been described as hard charging.

Block trades

Segantii participates in

s and is one of the largest players in Asia. In May 2022,

Bank of America The Bank of America Corporation (often abbreviated BofA or BoA) is an American multinational investment bank and financial services holding company headquartered at the Bank of America Corporate Center in Charlotte, North Carolina. The bank ...

and Citigroup suspended all equity trading activities with Segantii due to their concerns on the firm's bets on large scale block trades. This edict was considered very rare for a firm with such a big name and size. During the same year, the

U.S. Securities and Exchange Commission The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...

was conducting an investigation into block trades. US authorities had sought communications between

Morgan Stanley Morgan Stanley is an American multinational investment management and financial services company headquartered at 1585 Broadway in Midtown Manhattan, New York City. With offices in more than 41 countries and more than 75,000 employees, the fir ...

and a former employee of Segantii. However Segantii has not been accused of wrongdoing and it is not known if it has been contacted as part of the US investigation.

References

External links

* {{DEFAULTSORT:Segantii Capital Management Financial services companies established in 2007 Companies of Hong Kong Hedge funds