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XN

XN is an American investment management firm and hedge fund based in New York City, founded in 2018 by Gaurav Kapadia, a former co-founder of Soroban Capital Partners.^[1]^[2] The firm focuses on long-term, fundamental investments in both public and private companies across all stages of development, partnering with exceptional founders to build enduring businesses.^[1]^[3] As of March 2025, XN manages approximately $4.46 billion in discretionary assets under management.^[4] XN began as a family office in 2019 before launching its flagship fund in July 2020, raising over $1 billion at inception from institutional investors.^[2] The firm employs a long/short equity strategy, with up to 35% of its capital allocated to private investments, emphasizing rigorous analysis and a culture of kindness and intellectual curiosity.^[2]^[5] Early performance was strong, with the fund returning 46% in its first five months through November 2020.^[2] Notable positions have included public companies like Pinterest and Farfetch, as well as private ventures such as Impossible Foods and Relativity Space.^[2] Led by Kapadia as CEO, XN's leadership team includes President David Bronstein, CFO Daniel Loeb, and General Counsel Thomas O'Grady, operating under the general partnership of Euler Number LLC.^[4] The firm has positioned itself as a flexible investor, capitalizing on opportunities like shorting overvalued SPACs during the 2020 boom.^[2] XN prioritizes compounding returns through deep relationships and knowledge accumulation, distinguishing itself in the competitive hedge fund landscape.^[6]

History

Founding and early years

XN was founded in May 2018 by Gaurav Kapadia in New York City as an independent, SEC-registered investment adviser initially operating as a family office. Kapadia, who had previously co-founded and co-managed Soroban Capital Partners—a long/short equity hedge fund that peaked at over $10 billion in assets under management—in 2010, established XN with a focus on long-term compounding investments across public and private markets. The firm's name draws inspiration from the mathematical concept of exponential growth, reflecting its philosophy of patient, high-conviction capital allocation to build enduring value.^[7]^[2]^[8]^[9] In its early years, XN operated with a lean structure, emphasizing rigorous analysis and selective opportunities amid market volatility. Kapadia, leveraging his experience from Soroban where he navigated activist strategies and concentrated bets, positioned XN to capitalize on temporary dislocations in equity markets. The firm maintained a low public profile, avoiding traditional hedge fund marketing in favor of relationships built on performance and trust. By 2020, despite the challenges of the COVID-19 pandemic, XN successfully launched its flagship fund, securing over $1 billion in committed capital from a diverse group of institutional and high-net-worth investors—a notable achievement for a start-up hedge fund in a turbulent environment.^[10]^[11]^[1] This rapid scaling marked XN as one of the largest new hedge fund launches of 2020, with assets under management growing to approximately $2.5 billion by the early 2020s through concentrated positions in undervalued public equities and select private ventures. Early investments highlighted the firm's strategy of partnering with exceptional founders and targeting category-defining businesses, setting the stage for its expansion into a multi-strategy platform. The period from 2018 to 2022 solidified XN's reputation for disciplined risk management and long-term orientation, even as broader markets grappled with inflation and geopolitical shifts.^[12]^[1]^[5]

Expansion and milestones

Following its establishment in 2018, XN transitioned from a family office structure in 2019 to launching XN LP in July 2020, raising over $1 billion in committed capital and marking one of the largest hedge fund debuts amid the COVID-19 pandemic.^[10]^[13] This launch enabled XN to expand its investment mandate beyond personal capital, incorporating both public equities and private company stakes to pursue long-term opportunities across market cycles.^[2] In its inaugural period, XN achieved a net return of 46% in the first five months through November 2020, outperforming broader market indices like the S&P 500 amid volatility from the pandemic and SPAC activity.^[2] By the end of Q4 2020, the firm's discretionary assets under management (AUM) reached $1.53 billion in 13F securities, reflecting rapid capital inflows and early investment traction.^[11] This performance solidified XN's reputation, attracting institutional investors and supporting further growth. XN's AUM continued to expand steadily, growing to approximately $2.5 billion by December 2022 as the firm scaled its hybrid public-private strategy and team.^[12] By March 2025, total regulatory AUM had increased to $4.46 billion, demonstrating sustained expansion driven by strong risk-adjusted returns and diversification into venture-stage deals, such as contributions to Gecko Robotics' Series C and D funding rounds to bolster AI-driven industrial inspection technologies.^[4]^[14] As of October 2025, AUM remained at around $4.46 billion per the latest Form ADV filing, underscoring XN's maturation into a prominent multi-strategy investment manager with 33 employees focused on rigorous, long-term value creation.^[15] In November 2025, XN participated in Ursa Major's $100 million Series E funding round to support advancements in hypersonics and rocket propulsion technologies.^[16]

Investment philosophy and strategy

Core principles

XN's investment philosophy is anchored in three core principles: concentration, deep research, and flexibility. The firm maintains a concentrated portfolio, typically holding 10-15 core positions, to maximize conviction in high-quality opportunities while mitigating unnecessary diversification risks. This approach allows for significant allocation to top ideas, often committing 5-10% of assets to individual investments when confidence is high.^[11] Deep research forms the foundation of XN's process, involving rigorous fundamental analysis, first-principles reasoning, and extensive due diligence on both public and private companies. Founder Gaurav Kapadia emphasizes building proprietary insights through direct engagement with management teams and industry experts, enabling the identification of undervalued assets during market dislocations. This principle extends to a long-term orientation, where the firm prioritizes enduring business models over short-term catalysts, guided by the belief that sustained compounding drives superior returns.^[17]^[11] Flexibility is a hallmark of XN's strategy, allowing seamless capital deployment across public equities, private investments, and all stages of company development. As a crossover investor, XN allocates up to 35% of capital to private opportunities, partnering with exceptional founders to construct category-defining businesses. This adaptability is complemented by a culture of rigor in analysis paired with kindness in relationships, fostering trust and long-term collaborations essential for value creation.^[18]^[1]^[5]

Investment approaches

XN employs a long-biased long/short equity strategy, focusing on identifying and capitalizing on market inefficiencies through the purchase of undervalued stocks and selective short positions against overvalued ones.^[6]^[19] The firm maintains a concentrated portfolio, typically comprising 10-15 core positions, with the top 10 holdings accounting for approximately 67% of the portfolio as of early 2021, allowing for deeper conviction in high-potential opportunities.^[11] Central to XN's approach is rigorous, differentiated research to uncover underappreciated aspects of business quality, growth potential, and earnings power, particularly during periods of temporary market dislocations.^[11] This research-intensive process emphasizes patience and discipline to monetize insights over the long term, aligning with the firm's overall long-term orientation in investing across public and private markets.^[20]^[1] Flexibility is a key pillar, enabling XN to adapt to evolving opportunities, including up to 35% allocation of capital to private investments in exceptional companies at various stages, alongside public equity positions.^[2]^[3] For instance, the firm has opportunistically shorted SPACs during market booms to exploit perceived overvaluations, contributing to strong early performance such as a 46% return in its first five months of trading in 2020.^[2] To enhance decision-making, XN leverages data analytics to mitigate biases and expand beyond traditional networks, while fostering a diverse team to improve investment outcomes and support underrepresented managers through incubation programs.^[21] This integrated approach underscores the firm's commitment to building enduring partnerships with founders and compounding returns through rigorous analysis and cultural emphasis on kindness and rigor.^[5]

Organizational structure

Leadership team

XN's leadership team is headed by Gaurav Kapadia, who serves as Founder and Chief Executive Officer. Kapadia established the firm in 2018 with over $1 billion in committed capital, focusing on long-term investments in public and private companies. Prior to founding XN, he was a Partner at TPG-Axon Capital, where he managed investments in New York and London, and earlier co-founded Soroban Capital Partners, a hedge fund that achieved annualized returns of 13% before closing in 2018 to allow for a more concentrated strategy. Kapadia holds a BSc in Economics from the University of Pennsylvania.^[10]^[7]^[22] David Bronstein joined as President in 2020, overseeing operations and strategic initiatives. Bronstein brings extensive experience from his 22-year tenure at the Boston Consulting Group (BCG), where he rose to Senior Partner and Managing Director, leading the private investments in public equity (PIPE) practice for the Americas and serving on the North America Leadership Team. His expertise in private equity and strategic advisory has been instrumental in XN's partnership approach with founders.^[23]^[24] Daniel Robert Loeb serves as Chief Financial Officer, managing the firm's financial operations and reporting. Loeb is listed as a key executive in XN's regulatory filings.^[15] Thomas Loughlin O'Grady serves as General Counsel and Chief Compliance Officer.^[4]

Key personnel and roles

Gaurav Kapadia serves as the founder and chief executive officer of XN, overseeing the firm's overall investment strategy and operations. Prior to establishing XN in 2018, Kapadia co-founded the activist hedge fund Soroban Capital Partners in 2010, where he managed a concentrated portfolio focused on long-term value creation.^[2] Jan Bennink holds the position of executive partner, bringing expertise in consumer industry investments and dealmaking to support XN's private equity activities. Bennink previously led major transactions, including the $17 billion sale of Numico in 2007 and the $10 billion divestiture of DE Master Blenders in 2013. He joined XN in late 2020 to enhance the firm's capabilities in partnering with category-defining businesses.^[2] Carl Bass, former chief executive officer of Autodesk from 2006 to 2017, contributes as a senior advisor on technology sector investments, having joined XN in February 2020. His role involves guiding evaluations of software and engineering-focused opportunities within the firm's public and private portfolios.^[2] Rob Marcus, who served as chief executive officer of Time Warner Cable from 2013 to 2016, acts as a strategic advisor on media and telecommunications investments since joining in February 2020. Marcus's experience helps XN navigate complex public market dynamics and private growth-stage deals in these sectors.^[2] As of 2025, XN maintains a lean investment team of approximately 33 professionals, emphasizing specialized roles in research, portfolio management, and compliance to execute its long/short equity and private investment mandate.^[6]

Portfolio and investments

Notable holdings

XN's portfolio features a concentrated selection of public equities, reflecting its long-term investment strategy focused on high-conviction opportunities in established and growth-oriented companies. As of the third quarter of 2025, the firm's total 13F-reported assets under management stood at approximately $3.40 billion, with the top five holdings comprising over 42% of the portfolio.^[4] Among these, TKO Group Holdings, Inc. (NYSE: TKO) represents the largest position at 16.02% of the portfolio, valued at $545 million, underscoring XN's interest in the media and entertainment sector through the parent company of WWE and UFC.^[4] Taiwan Semiconductor Manufacturing Company (NYSE: TSM) accounts for 7.25% or $247 million, highlighting exposure to semiconductor manufacturing and AI chip demand.^[4] The Sherwin-Williams Company (NYSE: SHW), a leading paints and coatings manufacturer, constitutes 6.42% of the portfolio at $218 million, reflecting confidence in consumer staples and industrial sectors.^[4] Toast, Inc. (NYSE: TOST), a cloud-based restaurant management platform, holds 6.40% valued at $218 million, demonstrating XN's stake in fintech and software solutions for small businesses.^[4] TransUnion (NYSE: TRU), a global information and insights company, rounds out the top five at 6.03% or $205 million, emphasizing investments in consumer credit and data analytics.^[4] Beyond these core positions, XN has expanded stakes in technology leaders, including increases in Amazon.com, Inc. (NASDAQ: AMZN) by over 240,000 shares in the second quarter of 2025, driven by e-commerce and AI growth prospects, and Nvidia Corporation (NASDAQ: NVDA) with an addition of 3,027 shares in early 2025 and further increases later in the year.^[25]^[26] Microsoft Corporation (NASDAQ: MSFT) entered the portfolio in early 2025 as a new position with 265,320 shares valued at $111 million, aligning with XN's focus on software and cloud computing innovation.^[27] In parallel with public market investments, XN pursues private equity opportunities across company stages, partnering with founders to develop category-leading businesses, though specific private holdings remain undisclosed in public filings.^[2] This dual approach enables the firm to support enduring value creation in both liquid and illiquid assets.^[7]

Investment sectors

XN maintains a sector-agnostic approach to investments, focusing on exceptional companies and founders rather than predefined industries, as part of its flexible mandate across public and private markets.^[8] This strategy allows the firm to pursue opportunities in high-growth areas while employing long/short equity tactics in public markets and selective partnerships in private ventures. The portfolio reflects concentrations in sectors where the firm identifies enduring competitive advantages and compounding potential.^[1] In public markets, XN's holdings demonstrate significant exposure to technology (32%) and communication services (28%), which together comprise a substantial portion of its equity portfolio as of Q3 2025. For instance, the firm holds major positions in Taiwan Semiconductor Manufacturing Company (technology, semiconductors) and TKO Group Holdings Inc. (communication services, media and entertainment, encompassing WWE and UFC), alongside other leaders like Toast Inc. (cloud-based restaurant management software). These selections underscore XN's emphasis on innovative, scalable businesses within dynamic sectors, often avoiding balance sheet-intensive areas like traditional financials or healthcare where possible.^[4]^[28] For private investments, XN targets emerging technologies and disruptive innovations, typically committing up to 35% of investor capital to such opportunities. Notable examples include Impossible Foods Inc. (food technology, plant-based proteins), where XN participated in a 2020 Series G round valuing the company at approximately $4 billion, and Relativity Space Inc. (aerospace, 3D-printed rockets), supporting its mission to revolutionize space launch capabilities.^[2]^[29] More recent private bets extend to robotics and energy infrastructure, as evidenced by participation in funding for automation-focused startups.^[30] This private allocation complements the public portfolio by providing exposure to early-stage, category-defining companies in high-impact sectors like sustainable food systems and advanced manufacturing.^[6]

Performance and impact

Financial performance

XN LP, the flagship fund of XN Exponent Advisors LLC, demonstrated strong initial performance following its launch in 2020, achieving a 46% return in its first five months of trading.^[2] This early success positioned XN as one of the largest new hedge funds of that year, attracting significant capital inflows and enabling rapid scale-up.^[2] Over the subsequent years, the fund's assets under management (AUM) grew substantially, reflecting investor confidence in its long-term oriented strategy. As of December 2021, XN LP's 13F-reported AUM stood at approximately $1.15 billion, expanding to $3.12 billion by June 2025, with total discretionary AUM reaching $4.46 billion per the latest Form ADV filing in March 2025.^[31]^[4] This growth represents a compound annual growth rate of over 25% in reported portfolio value from 2021 to 2025.^[31] In terms of recent returns, XN LP recorded an average annualized return of 10.82% over the last three years ending in 2025, outperforming broader market benchmarks in select periods but maintaining a Sharpe ratio of 0.72, indicative of moderate risk-adjusted performance.^[32] The fund's portfolio, concentrated in about 20 holdings with a 70.78% allocation to the top 10 positions as of Q2 2025, has shown estimated 3-year cumulative returns of 137.87% when weighted by top 20 holdings, though actual fund-level results may vary due to non-disclosed positions and trading activity.^[4]^[33] Overall, XN's financial trajectory underscores its evolution from a startup hedge fund to a mid-sized player managing billions in assets, driven by a focus on high-conviction public and private investments.^[4]

Industry recognition

XN has garnered attention in the financial industry for its rapid ascent as a prominent new entrant in the hedge fund space. In 2020, the firm was highlighted by The Wall Street Journal as one of the notable hedge fund launches amid the COVID-19 pandemic, having successfully raised over $1 billion in committed capital shortly after its inception.^[10] The Financial Times further recognized XN as one of the largest new hedge funds of that year, noting its exceptional early performance with a 46% return in the first five months of trading. This strong debut underscored the firm's flexible mandate to invest across public and private markets, positioning it as a significant player in long/short equity strategies.^[2] As of Q3 2025, XN Exponent Advisors LLC managed approximately $3.4 billion in 13F securities, with the top 10 holdings comprising 66.92% of the portfolio, reflecting sustained industry acknowledgment of its investment approach and asset accumulation.^[34]

References

[1]
XN | Institution Profile - Private Equity International
Founded in 2018, XN is an investment management firm that partners with exceptional founders to build enduring, category-defining businesses across ...
[2]
Start-up hedge fund XN sees chance to bet against Spac boom
Dec 10, 2020 · Mr Kapadia started XN after leaving Soroban Capital, an equity hedge fund manager he co-founded in 2010. Soroban returned capital from its ...
[3]
XN - Crunchbase Company Profile & Funding
XN is an investment firm specializing in both public and private equity investments across various stages of company development. Founded. obfuscated.
[4]
XN LP Top 13F Holdings - WhaleWisdom.com
XN is based out of New York. XN is a hedge fund with 15 clients and discretionary assets under management (AUM) of $4,461,725,326 (Form ADV from 2025-03-31) ...
[5]
Everything Compounds - Colossus
Mar 22, 2022 · Gaurav Kapadia is the founder of investment firm XN. We cover his approach to building XN around a culture of rigor and kindness.
[6]
XN Hedge Fund Manager Profile - Preqin
XN is a New York-based hedge fund manager established in 2018. The firm employs long/short equity strategies and provides discretionary investment advisory ...
[7]
Melissa Gilliam and Gaurav Kapadia Join Mellon Foundation's Board
Sep 11, 2023 · Mr. Kapadia is the Founder and Chief Executive Officer of XN, a prominent long-term focused investment firm that invests across public and ...
[8]
[PDF] 2Q24 Letter: North Square Evanston Multi-Alpha Fund*
Aug 9, 2024 · New Investment with XN LP (“XN”). Multi-Alpha also initiated an ... XN was founded as a family office in 2018 by Gaurav Kapadia, who was ...
[9]
http://northsquareinvest.com/wp-content/uploads/2024/08/North-Square-Evanston-Multi-Alpha-Fund-2Q-2024-Client-Letter.pdf
[10]
Hedge fund XN was one of 2020's largest new funds. Gaurav ...
Mar 5, 2021 · In the article, XN's founder and principal owner Gaurav Kapadia discussed opportunities for shorting blank check stocks. 13F filings do not ...Missing: firm | Show results with:firm
[11]
XN LP | Form ADV - RADiENT Analytics
XN LP is an investment adviser based in New York, founded in May 2018 and owned primarily by Gaurav Kapadia. The firm manages approximately $2.5 billion of ...
[12]
Hedge fund launches pick up despite pandemic
Aug 4, 2020 · XN invests in stock markets as well as in private companies and is up 7.4% after fees since its July 1 start, according to a person familiar ...Missing: milestones timeline expansion
[13]
Gecko Robotics, Inc. Funding & Investors Overview - Exa
XN contributed to both Series C and Series D rounds, helping Gecko Robotics, Inc. accelerate growth and strengthen its AI capabilities. Drive Capital. Drive ...
[14]
[PDF] FORM ADV - SEC.gov
Oct 30, 2025 · MORGAN STANLEY FUND SERVICES USA LLC IS AN INDEPENDENT FUND ADMINISTRATOR TO THE PRIVATE FUNDS MANAGED BY XN LP AND KEEPS CERTAIN. BOOKS AND ...
[15]
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[16]
XN is an Investment Firm.
XN is an investment firm that invests in exceptional public and private companies.Missing: company | Show results with:company
[17]
Is TransUnion (TRU) the Top Stock to Buy According to XN ...
Mar 25, 2025 · Established in 2018 by Gaurav Kapadia, XN Exponent Advisors LLC is based in New York and manages approximately $2.53 billion in 13F securities ...
[18]
Gaurav Kapadia - XN | LinkedIn
Gaurav Kapadia is the Founder and CEO of XN, a long term focused investment firm that… · Experience: XN · Education: University of Pennsylvania · Location: ...Missing: history | Show results with:history
[19]
How does XN make investment decisions? | Ask Dexa
Another key strategy in their decision-making process is breaking down existing network effects by leveraging data. XN employs data to overcome biases that ...
[20]
Soroban Shuts $4 Billion Hedge Fund to Concentrate Portfolio
May 7, 2018 · Other hedge fund managers have been closing funds amid poor performance, but Mandelblatt and Kapadia have produced annualized 13 percent returns ...
[21]
David Bronstein - President at XN - LinkedIn
President at XN · Experience: XN · Location: New York · 500+ connections on LinkedIn. View David Bronstein's profile on LinkedIn, a professional community ...
[22]
tm2129109-1_s4 - none - 93.8912048s - SEC.gov
Bronstein and Kristen Masino from XN and Niron Stabinsky from Credit Suisse to discuss a potential transaction with Bright Machines. On February 23, 2021 ...
[23]
XN Company Profile | Management and Employees List - Datanyze
Executive Team ; Kristen Masino. Chief Financial Officer · Kristen Masino on Linkedin. Email. Phone. Reveal for Free ; David Bronstein. President. David Bronstein ...
[24]
Hedge Fund Moves in Big Tech: XN LP's Amazon Stake Expansion
Aug 16, 2025 · XN LP's dual approach—both increasing and reducing its Amazon stake—reflects a nuanced understanding of market dynamics. While the fund's ...
[25]
XN LP's Gaurav Kapadia Boosts Nvidia Stake by 3,027 Shares
Feb 15, 2025 · XN LP, managed by Gaurav Kapadia, recently executed a significant transaction involving Nvidia Corporation (($NVDA)).
[26]
Top 10 Stocks to Buy According to XN Exponent Advisors LLC
Mar 21, 2025 · Microsoft Corporation (NASDAQ:MSFT) is a recent addition to Gaurav Kapadia's portfolio, with the hedge fund acquiring shares for the first ...
[27]
XN - LinkedIn
XN is an investment firm with a flexible mandate to invest in public and private companies across all stages. The firm supports exceptional founders and ...
[28]
XN Exponent Advisors 13F filings and top holdings and stakes
XN Exponent Advisors was a net seller of stock by $-7.4M. XN Exponent Advisors has $2.1B in assets under management (AUM), dropping by -1.38%. Central Index ...
[29]
Impossible Foods raises $200 million at estimated $4 billion valuation
Aug 14, 2020 · Impossible Foods raises $200 million at estimated $4 billion valuation ... XN, Mirae Asset Global Investments and Temasek also participating.
[30]
https://x.com/gauravkapadia
[31]
XN LP AUM History - Holdings Channel
XN LP's AUM was $1,147,543,000 on 12/21/2021 and $3,122,706,000 on 06/25/2025, with a growth of $1,975,163,000. Data is from 13F filings.
[32]
Gaurav Kapadia XN LP - Hedge Funds - TipRanks
Rating 2.1 · Review by TipRanksGaurav Kapadia manages more assets than 59% of asset managers and has an 42.30% ranking based on the performance of XN LP.Missing: expansion milestones
[33]
XN LP Fund Performance History & Annualized Return - HedgeFollow
XN LP. $ 4.46B. -. $ 4.46B. 2025-03-31. AUM for US vs Foreign Investors. XN LP. AUM for Fund Owners vs Investors. XN LP. AUM by Client Type. XN LP. Total AUM vs ...