Billionfold's AUM Surges to $830M as Foreign Capital Floods Korean Hedge Funds

Billionfold Asset Management's assets under management have surpassed 1.2 trillion won ($830 million), industry sources said Wednesday, as foreign investors pour capital into Korean hedge funds amid a revaluation of the local stock market following commercial law reforms.

Foreign capital accounts for approximately 800 billion won of the total, with domestic funds comprising the remaining 400 billion won, according to investment banking sources. The figure represents nearly a fivefold increase from approximately 250 billion won in the first half of last year.

The asset surge accelerated in the second half of 2024 when Millennium Management, the U.S. hedge fund with roughly $100 billion in AUM, entrusted approximately 400 billion won to the Korean firm in August. Family offices in Hong Kong and Singapore have also committed capital, sources said.

Billionfold employs a long-short equity strategy targeting annual returns of 15-20% regardless of market conditions. The approach delivered 21.2% returns last year when the KOSPI rose 75%, while generating approximately 1% gains in 2024 when the index fell 9.6% and nearly 5% in 2022 when markets dropped 24.9%.

Global hedge fund AUM exceeded $5 trillion for the first time last year, with the sector increasingly viewed as a bond alternative offering stable returns amid market volatility. According to HFR's Global Hedge Fund Industry Report, 49% of global institutional investors plan to increase hedge fund allocations this year.

Billionfold has bolstered its team by recruiting fund managers from Korea Investment Corporation and Citi. Recent hires include Mikey Kim, a former sales trader at Citi, and Lee Tae-bin, who previously worked as a researcher at Exodus Point Capital after serving at KIC.

Founded in 2016, Billionfold is led by CEO Ahn Hyung-jin, formerly of Timefolio Asset Management, who oversees investment strategy. Lee Ki-sung, with experience at Citigroup and Credit Suisse, heads overseas fundraising, while CEO Kim Dae-hyun manages overall operations and internal controls.