Ex-Goldman Trader Wang Is Said to Start Asia-Focused FundKelly Bit and Bei Hu
Ted Wang, the former co-head of equities trading for the Americas at Goldman Sachs Group Inc., is starting a hedge fund firm with three colleagues from the bank.
Wang, 48, plans to open Puissance Capital in the second quarter to bet on and against global equities with a focus on Asia, said three people familiar with the firm’s plans, who asked not to be identified because the information is private.
Assets at some of Asia’s newer hedge funds have soared, attracting investors by beating global peers’ performance for a third straight year. Goldman Sachs Investment Partners, set up to allow clients to invest with some of the bank’s top proprietary traders, raised about $1 billion for its first Asia hedge fund last year after starting in 2013.
Puissance is a phonetic transcription of the Chinese words pu and sheng, which mean wood -- connoting humility -- and prosperity, one of the people said. It also refers to a horse that can jump over large obstacles and is significant because 2014 was the year of the horse according to the Chinese zodiac, one of the people said.
Wang will have about 12 employees between Puissance’s offices in New York and Beijing. He is joined by former colleagues Hongwei Cai, who was a quantitative researcher and equity money manager in the QIS Group at Goldman Sachs Asset Management and will run the Beijing office; Rodney Miller, who was chief financial officer of global prime services at the bank and will be CFO and chief operating officer; and Feng Lu, who worked in trading at Goldman in China and will be director of trading at Puissance, two of the people said.
Wang worked at New York-based Goldman for 18 years and was also global co-head of the One Delta trading unit. Miller declined to comment on the new firm’s plans.
The Volcker Rule, a provision of the 2010 Dodd-Frank Act that restricts U.S. banks’ ability to trade with their own money, has prompted former traders and executives to open hedge funds. Startups run by ex-Goldman Sachs employees include Morgan Sze’s Hong Kong-based Azentus Capital Management, which began in 2011. Sze has been making changes to boost returns after the fund’s assets shrank, a person familiar with the matter said last month. Three partners are scheduled to leave Sze’s firm at the end of March.
Asia’s emerging hedge funds that were a magnet for investors last year include BosValen Asset Management, Pleiad Investment Advisors and Guard Capital Management, which started in 2014 and raised hundreds of millions of dollars each within a few months.