Some China-focused hedge funds are reporting explosive returns in September, thanks to a sharp rebound in Chinese stocks driven by Beijing’s aggressive stimulus package, reports Reuters. The surge in stocks, which fuelled a 25% record jump over five days last week in China’s blue-chip CSI 300 Index, catapulted Asian equity hedge funds to top performers globally for the year so far.
Hong Kong’s Triata Capital posted a return of as much as 44% last month, taking its Jan-Sept performance to 56%. The $770 million China-focused fund held long-term investments in data centres, internet giants, e-commerce and travel firms, and those investments bore fruit.
Yunqi Capital’s China Fund gained 26% before fees in September. The fund said its bets on beaten-down US-listed Chinese internet and fintech companies such as Lufax holdings and Qifu technology paid off. The fund also picked companies that were increasing buybacks and dividend payouts.