FengHe Fund Management Expands to Hong Kong Following Massive AUM Growth

FengHe Fund Management plans to expand into Hong Kong in H2 2026, following a doubling of assets and strong performance in Japan and Greater China markets.

By: AXL Media

Published: Mar 19, 2026, 4:57 AM EDT

Source: Reuters

Expansion into Hong Kong’s Financial Core

FengHe CEO Kwek Hyen Yong confirmed that the firm has secured office space in Two International Finance Centre (Two IFC), located in Hong Kong’s Central business district. The 17-year-old firm is currently navigating the regulatory process to obtain an asset management license from local authorities. This geographical expansion follows a period of rapid growth for FengHe, which was co-founded by veteran investor Matt Hu and former Alibaba CTO Wu Jiong. The move highlights Hong Kong's enduring appeal as a hub for institutional talent, joining other global firms like Jane Street and Point72 that have recently increased their footprint in the city.

Performance Amid Geopolitical Volatility

FengHe’s flagship Asia Fund, which focuses on equities in Japan, South Korea, and Greater China, has demonstrated significant resilience. The fund surged 17.8% during the first two months of 2026. While it experienced a 3.5% pullback in early March due to the escalating U.S.-Israeli conflict with Iran, it remained up 14.2% year-to-date as of mid-March. This follows a highly successful 2025, where the fund posted gains of 27.3%. The firm’s ability to attract capital bucks recent industry trends, which have seen investor interest narrow toward quant-driven or multi-manager "pod" shops.

A Talent-Centric Growth Strategy

According to CEO Kwek, the decision to open a Hong Kong office is primarily a strategic play for human capital rather than a reaction to specific market fluctuations. By establishing a presence in Hong Kong to complement its Singapore headquarters and Tokyo representative office, FengHe aims to offer greater flexibility to its investment professionals. The firm plans to launch with a small core team in Hong Kong with the intention of scaling headcount over the coming years as it integrates more deeply into the North Asian investment landscape.