Special-situations veteran Chris Hsu has started a new alternative investment vehicle in Hong Kong named Kilometre Capital Management.

The firm runs an Asian long/short equity strategy focused on selected Asian growth equity investments. Initial assets under management are around $200 million. 

The fund is closed and not being marketed. Kilometre is backed by US alternative investment group Paloma Partners. Since the 1980s, Paloma has been the early backer for a number of prominent hedge funds including David Shaw at DE Shaw.

Taiwanese native Hsu started Abax Global Capital, now a leading Asian special-situations fund, as chief executive in late 2006. He was previously a managing director at Citadel Investment Group, having established Citadel's special-situations business in Hong Kong. 

Hsu left Abax in late 2008. At that time, he had indicated he believed in a more liquid equity strategy, and that has now come to fruition with Kilometre Capital.