Welcome to Karana Capital
A New York-based hedge fund employing a disciplined quantamental strategy seeking to generate returns across market cycles

ABOUT KARANA
Differentiated
The approach is largely uncorrelated to the broader market trends, giving the fund a competitive edge in continuously generating alpha.

Balanced
The strategy is designed to respond to changing market environments through a combination of quantitative analysis and discretionary evaluation.

Disciplined
​Portfolio positioning is implemented selectively, with an emphasis on patience and structured decision-making within a defined investment framework.


Strategy
Karana Capital's AI-powered quantamental approach integrates behavioral finance, game theory, market sentiment analysis, large language models, fundamental research, and technical analysis. Across varying market cycles, the strategy is designed to identify high-probability trading opportunities—aiming to generate alpha and market-uncorrelated returns for investors while managing risks.
Core Philosophy

Factors and Signals

Focused Instruments

Risk Management


Leadership
Yuxi Li is the Founder, CEO, and CIO of Karana Capital. A self-made trader who began her investment journey with minimal capital and a non-traditional Wall Street background, she built her track record through sharp trading instincts, emotional discipline, mental resilience, and a deep understanding of market psychology and dynamics. Yuxi holds a bachelor’s degree in Finance from Zhejiang Gongshang University in China and a master’s degree in Education from Columbia University. Backed by a strong mathematical foundation, she has the ability to quickly spot patterns and relationships within complex data—an edge that drives her high-speed, high-conviction decision-making. Starting with equities and options trading, she gradually expanded into strategy design and evaluation—ultimately founding and managing her own hedge fund.
At Karana Capital, Yuxi oversees portfolio management, strategy development, and investor relations. She brings a fresh perspective to markets, and applies a creative, nuance-oriented approach to trading. Yuxi is highly selective and patiently waits for asymmetric, high-conviction opportunities—striking with agility and precision the moment conditions align. She specializes in identifying market inflection points, drawing on a multi-dimensional framework that includes macro fundamentals, technicals, sentiment, and cyclical analysis.
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Yuxi draws upon research input and analytical perspectives from a group of traders and analysts with experience across quantitative research, technology, and financial markets. Their contributions support the fund's ongoing portfolio management within a defined investment framework.


