Singapore-based Dymon Asia Capital has brought on board former Millennium Management portfolio manager Shao Ying as it ramps up its relative-value equity trading capabilities, according to a report by Bloomberg.

The report cites a statement from Dymon as confirming that Shao will lead Dymon’s newly expanded linear equity relative value team. Dymon, which managed $4.7bn in assets as of March, is seeking to broaden its footprint in strategies such as index rebalancing, merger arbitrage, index arbitrage, and delta-one trading — all designed to capitalise on pricing inefficiencies across equity markets.

A seasoned index rebalancing specialist, Shao’s career has included senior roles at Goldman Sachs, Squarepoint Capital, and Millennium Management, according to her LinkedIn profile. She left Millennium, which manages $73bn, in August following a period of sharp market volatility that hit several index-focused trading teams.

Index rebalancing strategies, which exploit anticipated changes to stock indices, are popular with major hedge funds for their scalability and liquidity. However, they can be vulnerable to momentum reversals, leading to short-term losses when market dynamics shift unexpectedly.