Viridian posts 2.65% July gain; assets reach $680m

Viridian Asset Management posted a 2.65% return in July and raised assets under management to $680 million after a new investor began allocating to the firm on August 1 through a separately managed account. The strategy is up 3.8% year-to-date through July, and about three-quarters of July’s gain came from equity capital markets trades, according to an investor update.

The firm’s convertible bond strategy recorded its best monthly performance since launch, with gains from new issues and secondary-market trading. Volatility in technology stocks and a 13% rebound in Hong Kong equities in July supported trading opportunities.

Viridian generated returns from arbitrage, placements and block trades across the region. It took a position in SK Hynix American depositary receipts on the view that ADRs would trade at roughly a 25% premium to the company’s Korean-listed shares because restrictions on converting Korean shares into ADRs limit arbitrageurs’ ability to close the valuation gap. The firm participated in placements for Z.AI and Shanghai Iluvatar CoreX Semiconductor, and executed block trades in Beijing Geekplus Technology after lock-up restrictions expired. A hedged position around the Z.AI placement was profitable even though the stock ended July about 38% below the placement price.

Viridian launched in 2024 with a $100 million seed from Axa IM Prime and initially focused on providing liquidity around equity capital markets transactions. Pascal Guttieres, the founder, spent seven years as a portfolio manager at Segantii and previously worked as a UBS banker. He left Segantii before the firm faced charges related to a 2017 block trade and has not been accused of wrongdoing. The firm hired Marc-Antoine Chaudet, formerly of JPMorgan and Citadel, to lead the convertible bond strategy.

The fund’s results contrasted with wider regional equity long-short strategies, which suffered steep losses in July after a sharp reversal in AI-linked stocks. At the same time, IPOs, share placements and block trades across the region raised about $83 billion in July, providing liquidity and deal flow for market-makers and arbitrageurs.

Viridian counts multi-strategy and multi-manager hedge funds among its clients. Regulatory changes in Japan and South Korea, together with strong technology-sector investment, have increased issuance and secondary-market activity and prompted global hedge funds and proprietary trading firms to expand operations in the region.