Capstone Investment Advisors
Capstone Investment Advisors is a New York-based global investment management firm with approximately $11 billion in assets under management across a diversified range of strategies. The firm specializes in derivatives-based investing, including volatility, macro, and systematic strategies, as well as relative value and multi-asset approaches.
We’re pleased to announce that Capstone Investment Advisors has furthered its global expansion by launching its Tokyo office in April 2024, positioning it as a vital hub for its Asia operations. This new base is part of the firm’s strategic commitment to deepen its regional footprint and better serve institutional clients in Asia.
About Capstone Investment Advisors
Capstone Investment Advisors is a New York-based global investment management firm with approximately $11 billion in assets under management across a diversified range of strategies. The firm specializes in derivatives based investing, including volatility, macro, and systematic strategies, as well as relative value and multi-asset approaches. Capstone serves a broad base of institutional investors worldwide, leveraging its expertise in risk management, quantitative research, and technology-driven solutions to deliver innovative investment opportunities. For more information, please visit Capstone’s official website.
Strategic Vision for Japan
Q1: What are Capstone's strategic objectives and the specific value propositions in the Japanese market?
Riza Okada: Capstone is a forward-thinking global asset manager, dedicated to exploring opportunities in derivatives and complementary strategies that persist across market cycles. We’ve always had a long-term vision of building a presence in Asia, particularly in Japan. As we diversify our alpha sources, we’re looking to expand the business in Japan and hire talent here for the long run.
Q2: How long has Capstone been strategizing its expansion into Japan, and what factors influenced the timing of this initiative?
Riza Okada: I think the short answer is that we’ve been thinking about it for a long time. The difficult part has been talent. We need the right person locally to represent the firm — not just in facing clients, but also in communicating effectively internally. The local culture and the way business is done here are quite different from how it’s done in the US, so having the right talent is key. That’s probably why it took us a long time to set up an office here.
Q3: In what ways do you anticipate Capstone's presence in Tokyo will enhance relationships with existing and potential Japanese investors?
Riza Okada: As with Japanese investors, or investors in any country, having a local presence matters. It’s not just about having a local touchpoint when something goes wrong, but also about maintaining strong connectivity. In that sense, setting up the office last year was a key step, and we hope to continue expanding our presence across key regions.
Why Tokyo?
Q4: What were the primary reasons for selecting Tokyo as the location for your Japanese headquarters?
Riza Okada: Well, it’s the capital of the country, that was quite key for us. Being the capital means there’s more talent than in any other city, and obviously more clients, so the stars are aligned. Here, you have everyone within 30 minutes, which is quite an important factor for us, because we can actually go and see them rather than just have an online meeting.
Q5: In what ways does Tokyo offer distinct strategic advantages over other major financial hubs in the region such as Singapore or Hong Kong?
Riza Okada: I think each region is equally important, it’s just that we didn’t have an office in Japan. Having support from the government was an important factor, but again, it ultimately came down to talent in terms of the timing for the firm.
Setup Experience and Local Support
Q6: What challenges did you encounter during the setup process in Tokyo, and how did you address them?
Riza Okada: There are so many challenges, though we’ve had a lot of local support as well — from finding a place, getting local tax advice, to handling compliance related matters. You face these kinds of challenges when opening an office in any country. The time zone difference is a challenge, and helping headquarters to understand local culture is a key to success.
Q7: How have FinCity.Tokyo and Visual Alpha supported your establishment in Tokyo, and which aspects of their assistance did you find most beneficial?
Riza Okada: At every step, we received support from FinCity.Tokyo and Visual Alpha, and we really appreciate that. As a firm, we simply have limited resources to manage all the paperwork on our own. But for those who do, we believe they can be very beneficial if you’re looking to expand into Japan. It’s also been interesting to see who else is setting up shop here. FinCity.Tokyo provides a great platform through its various forums that help us understand what others are going through — and it’s reassuring to know we’re not alone. For all those reasons, we’re thankful to the teams for their support.
Q8: Reflecting on the establishment process, what insights or recommendations would you offer to other companies considering expansion into Tokyo?
Riza Okada: It’s about having the right people, it’s always about the people. It’s not only about resources, but also about having the local understanding required to set up something as complex as this. It takes both internal and external support to get through the process. We’re still grinding through it every day, but it’s great to stay connected (with FinCity.Tokyo and Visual Alpha) and work together to better understand how to move this project forward.