Tsai Capital

Tsai Capital Corporation
Private
Industry Investment Management
Founded New York City, USA (November 1997)
Headquarters IBM Building, New York City
Key people
 Christopher Tsai (Founder)
Website www.tsaicapital.com

Tsai Capital Corporation is a Manhattan-based[1] investment management and advisory firm.[2][3] The company was founded by Christopher Tsai in 1997[4] when he was 22 years old.[2] Tsai is the son of the late American financier Gerald Tsai.[5] The firm primarily focuses on high-quality, growth companies.[3][4]

In 2005, the firm maintained holdings in companies like Walmart, UPS, and Johnson & Johnson.[6] More recently, the firm has invested in China (among other emerging markets), maintaining holdings in Jardine Matheson.[7]

History

At the age of 16, Christopher Tsai managed the liquid savings (around $400,000) of a Chinese restauranteur. He used the capital he earned from that client and some capital from his family to start Tsai Capital in 1997 at the age of 22.[2] Since its foundation, the firm has maintained a focus on global equities and long-term investments.[8] During that time, Tsai Capital managed the money of primarily high net-worth individuals and family offices.[9] The firm also invested in high-quality growth companies like Walgreens, Bed Bath & Beyond, Wrigley, and Gillette.[6]

In 2011, Tsai Capital launched a long/short equity fund.[9][10] The fund launched with around $20 million in existing capital from current clients.[10] It operates using similar precepts found in Tsai Capital's long-only, separate accounts.[5] In 2010, Tsai Capital created a 5-member advisory committee. In July 2013, Kristofer Segerberg, formerly of Soros Fund Management, was appointed to the committee.[11]

In 2014, the firm launched a seed and venture capital division called Tsai Ventures. Tsai Ventures provides seed funding for start-up companies. Justin Soffer, an internet media specialist, has partnered with Tsai Capital for this venture.[2] In April 2015, Tsai Capital Corporation and its affiliates led a $3 million Series A Preferred Stock financing for untapt inc.[12]

The firm invested in companies with exposure to Asia in 2014.[4] The firm has invested in companies like Jardine Matheson. They have also invested in Colgate Palmolive because of that company's influence and holdings in Asian markets. Tsai Capital has used this strategy with other American-based multinational corporations.[7]

Operation

Since its inception, Tsai Capital has focused on growth companies that the firm believes have high upside potential and downside protection. Christopher Tsai has stated that the firm looks for companies that it believes can grow for a long period of time.[3] The company's research method has been described as "painstaking." Although Tsai Capital operates a long/short equity fund, it still primarily makes investments on a long-term basis. The firm uses shorting sparingly.[7] The firm often uses short positions on stock market indexes in an attempt to achieve added safety.[4] Tsai Capital also invests on a global basis.[5]

References

  1. ↑ Elstein, Aaron (3 August 2014). "Frothy markets ready to pop?". Crain's New York Business. Retrieved 19 January 2015.
  2. 1 2 3 4 La Roche, Julia (11 February 2014). "Meet The Hedge Funder Whose Finance Roots Date Back To The Shanghai Stock Exchange During WWII". Business Insider. Retrieved 19 January 2015.
  3. 1 2 3 "Investing in Growth Global Equities with a Focus on Value". The Wall Street Transcript. 29 August 2014. Retrieved 19 January 2015.
  4. 1 2 3 4 "Christopher Tsai: Betting On Asian Consumer Names Like Jardine Matheson". China Money Network. 30 April 2014. Retrieved 19 January 2015.
  5. 1 2 3 "Q&A: Tsai Capital Founder Sees Long-Term Opportunities In Emerging Markets". FINalternatives. 10 April 2014. Retrieved 19 January 2015.
  6. 1 2 Gupte, Pranay (20 July 2005). "The Tsai Method of Selection: Stick to the Fundamentals". The New York Sun. Retrieved 19 January 2015.
  7. 1 2 3 Dennin, James (20 June 2014). "A long-term approach: Christopher Tsai on investing in Asia". Kapitall. Retrieved 19 January 2015.
  8. ↑ Vujovich, Dian (11 March 2015). "Tsai Capital founder discusses growth of Passport SMA". Palm Beach Daily. Retrieved 9 April 2015.
  9. 1 2 Tran, Hung (18 June 2014). "Hedge Fund Shorting Emerging Markets". ETF. Retrieved 19 January 2015.
  10. 1 2 "Tsai Capital Launches First Hedge Fund". FINalternatives. 3 June 2011. Retrieved 19 January 2015.
  11. ↑ "Tsai Capital Corporation Appoints Kristofer Segerberg, formerly of Soros Fund Management, to its Advisory Committee". Bloomberg L.P. 2 July 2013. Retrieved 19 January 2015.
  12. ↑ "Untapt Closes $3M In Series A Financing". FinSMEs. 21 April 2015. Retrieved 22 April 2015.
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