China-focused hedge funds recorded their best monthly performance in half a decade in April, as a rebound in the country’s markets following the coronavirus sell-off helped investors outperform their global peers, reported the Financial Times.
The Eurekahedge Greater China Hedge Fund index — which tracks almost 70 hedge funds with about $30 billion between them — climbed 9.7% last month, according to new data. That was its best showing since April 2015, and brought its year-to-date performance to a gain of 2.5%.
Mohammad Hassan, head analyst for hedge fund research at Eurekahedge, said China-focused funds had benefited from a tendency to invest in small and mid-cap companies, which had gained more in April than the larger and more frequently traded stocks in the CSI 300 benchmark index. The investment firms had “done a good job of capturing the market upside,” he said.
“We think China as a whole, for risk-adjusted return, is still the best,” said Monica Hsiao, chief investment officer at Hong Kong-based Triada Capital, an Asia credit-focused fund that saw a gain of 4.25% in April.