Industry Investment Management Type of business Private | Website www.tsaicapital.com Founded November 1997 | |
Key people Christopher Tsai (Founder) | ||
Tsai Capital Corporation is a Manhattan-based investment management and advisory firm. The company was founded by Christopher Tsai in 1997 when he was 22 years old. Tsai is the son of the late American financier Gerald Tsai. The firm primarily focuses on high-quality, growth companies.
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In 2005, the firm maintained holdings in companies like Walmart, UPS, and Johnson & Johnson. More recently, the firm has invested in China (among other emerging markets), maintaining holdings in Jardine Matheson.
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. Since its foundation, the firm has maintained a focus on global equities and long-term investments. During that time, Tsai Capital managed the money of primarily high net-worth individuals and family offices. The firm also invested in high-quality growth companies like Walgreens, Bed Bath & Beyond, Wrigley, and Gillette.
In 2011, Tsai Capital launched a long/short equity fund. The fund launched with around $20 million in existing capital from current clients. It operates using similar precepts found in Tsai Capital's long-only, separate accounts. 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.
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. In April 2015, Tsai Capital Corporation and its affiliates led a $3 million Series A Preferred Stock financing for untapt inc.
The firm invested in companies with exposure to Asia in 2014. 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.
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. 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. The firm often uses short positions on stock market indexes in an attempt to achieve added safety. Tsai Capital also invests on a global basis.