SINGAPORE — Quantitative hedge fund Meridian Saturn Capital secured a $1 billion allocation from an undisclosed Middle Eastern sovereign wealth fund to deploy into onshore Chinese equities via market-neutral strategies, according to CEO Kate Zhang.
The investor may increase its commitment if performance benchmarks are met. MS Capital already manages approximately $1.5 billion, including a prior $500 million investment from the same client.
The mandate reflects a measurable shift in how Middle Eastern institutional capital is allocating to Asia. Recent research from Goldman Sachs and BNP Paribas shows global institutional investors plan to increase China-focused strategy allocations this year, driven by both volatility in Chinese equity markets and improved execution from AI-assisted trading systems.
Zhang said the deal followed over a year of due diligence. The investor sought diversification into Chinese assets and systematic tools to enhance portfolio returns. MS Capital is in discussions with additional Middle Eastern institutions and plans offices in Abu Dhabi, Hong Kong, and the United States.
MS Capital's parent company, Meridian Global Inc, was founded in 2013 by Jude Zhu in Shanghai and manages approximately RMB7 billion ($1 billion) in onshore assets. Zhu also founded Leap Technologies, a fintech firm that supplies T+0 trading algorithms designed to capture intraday equity movements.
According to Zhang, Leap's systems have delivered annualized returns up to 10 percent for some clients through brokerage execution channels. The Middle Eastern investor will integrate Leap's technology into its portfolio strategy as part of the arrangement and has encouraged MS Capital to develop strategies for other regions.
MS Capital plans to deploy leverage within a separately managed account structure incorporating Leap's algorithmic tools.
