Woman-Led Hedge Fund Launches with Record-Breaking Debut

Mala Gaonkar's SurgoCap Partners hedge fund launched Tuesday with $1.8 billion in assets under management. This makes it the largest debut ever for a woman-led hedge fund in the industry.

SurgoCap will use data science to invest in companies that are using technology to enhance other sectors such as financials, industrials, health care and enterprise data, according to people familiar with the matter. The firm, with about 20 employees, will bet on and against stocks and can invest as much as a quarter of its assets in private companies, the people said.

The SurgoCap representative based in New York refused to give a statement.

This launch follows the October debut of Divya Nettimi's Avala Global, which started with more than $1 billion in committed cash. The two women attracted significant capital after establishing themselves at larger firms. Gaonkar, 53, spent 23 years at Lone Pine Capital, and Nettimi worked seven at Viking Global Investors.

At an investor conference in June, Gaonkar said she was bullish on ServiceNow Inc., an enterprise-software company that helps automate workflow. She believes that the company is well-positioned to capitalize on the growing trend of digital transformation.

Gaonkar was born in the US and raised mostly in Bengaluru, India. She earned an economics degree and MBA from Harvard before joining Lone Pine as a founding partner in 1998. Three years later, she was named portfolio manager overseeing wagers on tech, media, internet and telecom. She also co-headed the firm’s long-only funds.

In 2019, Steve Mandel decided to step back from day-to-day management and picked Gaonkar as one of three portfolio managers to oversee Lone Pine's assets, totaling $16.7 billion as of August. Gaonkar left in early 2022 to start SurgoCap.

Gaonkar is passionate about using technology for good. In 2015, she co-founded the Surgo Foundation, which uses artificial intelligence and behavioral science to solve global health problems. Five years later, she co-founded Surgo Ventures, a nonprofit that develops strategic partnerships with other groups to further the cause.

At SurgoCap, she’s saving $100 million of capacity for smaller endowments, foundations and nonprofits. These organizations help underserved communities or address climate change. As a result, these investors will pay lower fees. So far she’s gathered $35 million.

Gaonkar has committed to giving the majority of her wealth to philanthropy by signing the Giving Pledge.