Asia hedge funds benefit in Q1 from Japan rally, recovery in China By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 16 2024
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Source: Investing.com
- Strong Performance of Asia-focused Hedge Funds:
- Asian hedge funds had a strong first quarter in 2024 due to rallies in Japanese stocks, Chinese equities, and AI stocks.
- Funds using an Asian equities long/short strategy rose by 2.9% in the first quarter.
- Multi-strategy hedge funds investing in various asset classes posted a 3.7% return.
- Notable Performances and Gains:
- Panview Asian Equity Fund and FengHe Group saw significant returns of 15.5% and 6.6%, respectively.
- Japan-focused equity hedge funds were up by 5% during the period.
- China-focused Hedge Funds and Market Stability:
- Some China-focused hedge funds managed to post decent returns amid market volatility.
- Chinese stocks stabilized after interventions by the country's securities regulator.
- AI-related Trades and Outperformance:
- Hedge funds benefited from bullish wagers on the AI supply chain across the U.S., Taiwan, and mainland China.
- Grand Alliance Asset Management’s Sino Vision Market Neutral Fund reported a 6.1% net gain driven by AI-related trades.
- Impact of Regulatory Changes:
- China's quantitative hedge funds faced losses due to regulatory crackdowns in February.
- Jupiter Tactical Trading Fund and Ubiquant's overseas quantitative funds recorded double-digit losses in the first quarter.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
