Tsai Capital

American investment management and advisory firm

Tsai Capital Corporation

Company type| Private
Industry| Investment Management
Founded| New York City, USA (November 1997)
Headquarters| IBM Building, New York City

Key people

| Christopher Tsai (Founder)
AUM| US$111 Million (2023) [1]
Website| www.tsaicapital.com

Tsai Capital Corporation is a Manhattan-based[2] investment management and advisory firm.[3][4] The company was founded in 1997 by Christopher Tsai,[5] a third generation investor whose financial roots date back to World War II.[6] Tsai is also the son of the late American financier Gerald Tsai.[7] The firm follows a value-oriented investment approach and primarily focuses on high-quality, growth companies.[4][5]

## History

[edit]

Tsai Capital was founded in 1997 by Christopher Tsai, who is the President and Chief Investment Officer of the firm.[3] Since its foundation, the firm has maintained a focus on global equities and long-term investments.[8] Tsai Capital manages money primarily for high net-worth individuals, family offices,[9] corporations and charitable foundations. The firm invests in growth companies.[10]

In 2011, Tsai Capital launched an equity fund.[9][11] The fund launched with around $20 million in existing capital from current clients.[11] It operates using similar precepts found in Tsai Capital's long-only, separate accounts.[7] In 2010, Tsai Capital created a 5-member advisory committee. In July 2013, Kristofer Segerberg, formerly of Soros Fund Management, was appointed to the committee.[12]

The firm invested in companies with exposure to Asia in 2014[5] and has also invested in American-based multinational corporations.[13]

## Operation

[edit]

Since its inception, Tsai Capital has focused on businesses it believes have high upside potential and downside protection. Christopher Tsai has stated that the firm looks for asymmetric investment opportunities that it can hold for a long period of time.[4] The firm believes in concentration as opposed to broad diversification and does not equate volatility with risk. The firm defines risk as the potential for permanent loss of capital. Tsai Capital invests on a global basis and seeks durability of growth rather than high growth in any one year.[7] Tsai Capital prefers to invest in businesses that are asset-light and have durable competitive advantages.[14]

## References

[edit]

1. ^ Klebnikov, Sergei (2 September 2023). "An Accidental Momentum Investor's Market-Beating Strategy". Forbes. Retrieved 3 October 2023.
2. ^ Elstein, Aaron (3 August 2014). "Frothy markets ready to pop?". Crain's New York Business. Retrieved 19 January 2015.
3. ^ a b La Roche, Julia (11 February 2014). "Meet The Hedge Funder Whose Finance Roots Date Back To The Shanghai Stock Exchange During WWII". Business Insider. Retrieved 19 January 2015.
4. ^ a b c "Investing in Growth Global Equities with a Focus on Value". The Wall Street Transcript. 29 August 2014. Retrieved 19 January 2015.
5. ^ a b c "Christopher Tsai: Betting On Asian Consumer Names Like Jardine Matheson". China Money Network. 30 April 2014. Retrieved 19 January 2015.
6. ^ La Roche, Julia (11 February 2014). "Meet The Hedge Funder Whose Finance Roots Date Back To The Shanghai Stock Exchange During WWII". The Business Insider. Retrieved 5 December 2014.
7. ^ a b c "Q&A: Tsai Capital Founder Sees Long-Term Opportunities In Emerging Markets". FINalternatives. 10 April 2014. Retrieved 19 January 2015.
8. ^ Vujovich, Dian (11 March 2015). "Tsai Capital founder discusses growth of Passport SMA". Palm Beach Daily. Retrieved 9 April 2015.
9. ^ a b Tran, Hung (18 June 2014). "Hedge Fund Shorting Emerging Markets". ETF. Retrieved 19 January 2015.
10. ^ Gupte, Pranay (20 July 2005). "The Tsai Method of Selection: Stick to the Fundamentals". The New York Sun. Retrieved 19 January 2015.
11. ^ a b "Tsai Capital Launches First Hedge Fund". FINalternatives. 3 June 2011. Retrieved 19 January 2015.
12. ^ "Tsai Capital Corporation Appoints Kristofer Segerberg, formerly of Soros Fund Management, to its Advisory Committee". Bloomberg L.P. 2 July 2013. Retrieved 19 January 2015.
13. ^ Dennin, James (20 June 2014). "A long-term approach: Christopher Tsai on investing in Asia". Kapitall. Retrieved 19 January 2015.
14. ^ Klebnikov, Sergei. "An Accidental Momentum Investor's Market-Beating Strategy". Forbes. Retrieved 2023-10-03.

## External links

[edit]

* Official website

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Hedge funds

Investment
strategy|

| Arbitrage /
relative value|

* Capital structure arbitrage
* Convertible arbitrage
* Equity market neutral
* Fixed income arbitrage / fixed-income relative-value investing
* Statistical arbitrage
* Volatility arbitrage

|

Event-driven|

* Shareholder activism
* Distressed securities
* Risk arbitrage
* Special situation

Directional|

* Convergence trade
* Commodity trading advisors / managed futures account
* Dedicated short
* Global macro
* Long/short equity
* Trend following

Other|

* Fund of hedge funds / Multi-manager

Trading|

* Algorithmic trading
* Day trading
* High-frequency trading
* Prime brokerage
* Program trading
* Proprietary trading

Related
terms|

| Markets|

* Commodities
* Derivatives
* Equity
* Fixed income
* Foreign exchange
* Money markets
* Structured securities

|

Misc|

* Absolute return
* Arbitrage pricing theory
* Assets under management
* Black–Scholes model (Greeks: delta neutral)
* Capital asset pricing model (alpha / beta / security characteristic line)
* Fundamental analysis
* Hedge
* Securitization
* Short
* Taxation of private equity and hedge funds
* Technical analysis

Investors|

* Vulture funds
* Family offices
* Financial endowments
* Fund of hedge funds
* High-net-worth individual
* Institutional investors
* Insurance companies
* Investment banks
* Merchant banks
* Pension funds
* Sovereign wealth funds

Governance|

* Fund governance
* Standards Board for Alternative Investments
* Managed Funds Association

* Alternative investment management companies
* Hedge funds
* Hedge fund managers
* List of hedge funds

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