Singapore Family Office Builds Multi-Strategy Trading Platform

A Singapore family office multi-strategy model is being developed by former Goldman Sachs and Vitol commodities trader Kelvin Chiu as he seeks to attract independent investment teams overlooked by larger hedge funds.

Chiu’s SilverCape Investments now operates six trading pods alongside his own commodities strategy.

They include a Japanese activist investing team that managed more than USD200m at the end of August.

Chiu said his commodities strategy has generated a 78% compound annual growth rate since 2018.

However, capacity is limited to around USD100m because of the size of agricultural futures markets.

The pod structure enables him to diversify family capital while gaining exposure to the expertise and strategies of other traders.

Some teams could eventually accept external capital.

Chiu’s longer-term objective is to develop a family-office version of major multi-strategy investment firms such as Millennium while retaining the flexibility of a private investment operation.