Writer: Xia Zhen
HONG KONG (Reuters) – Asian hedge funds led international good points in Might and the primary 5 months as bullish sentiment in regional shares and profitable positions in China boosted outcomes.
Asia-focused lengthy/quick funds throughout all methods gained a mean of two.8% in Might and a mean of seven.5% between January and Might, in keeping with this week’s UBS prime brokerage report, suggesting they’ve outperformed their major investments. funds in america or Europe.
By comparability, hedge funds centered on america or Europe gained a mean of 1% in Might and a mean of 6% within the earlier 5 months.
The index has gained 8% thus far this yr and hit its highest stage since April 2022, pushed by a surge in synthetic intelligence (AI) shares and a rebound in Chinese language markets.
The index can be up 15% thus far this yr, helped by financial restoration and company reforms.
UBS mentioned Asia hedge fund good points in Might have been “primarily pushed by China-focused funds,” whereas efficiency by Japan-focused funds was blended.
Golden China, the flagship fund of Greenwoods Asset Administration, one in every of Asia’s largest hedge funds, rose 18.3% within the yr to Might, with good points in Might alone, in keeping with a evaluate of investor letters. 7%, primarily attributable to contributions from Chinese language know-how and power shares.
Greenwood declined to remark.
In the meantime, Pinpoint Asset Administration’s China fund gained 11.4% within the first 5 months, in keeping with a report from HSBC.
Shares are up 23% from January lows after giving again some good points in latest weeks amid weak financial information.
Timothy Moe, chief Asia-Pacific strategist at Goldman Sachs, mentioned that for Chinese language fund managers, “if you’re proactive and choose the higher components over the not-so-good components, you possibly can nonetheless Doing higher than the broader market index.
UBS mentioned that taking a look at methods in Asia, fairness funds that wager on rising or falling inventory costs rose greater than 3% final month, whereas quantitative and multi-strategy funds returned 2.5% and 1.3% respectively. It tracks 61 Asian hedge funds.
