Ryan Thall, a former partner at Goldman Sachs is steering his hedge fund firm away from investments in China due to the current struggles of the country’s economy. Beijing has placed restrictions on credit in the property sector and the country’s current battle with Covid-related lockdowns is also having a negative financial effect, reports Bloomberg.
Thall’s Panview Capital Ltd. has cut Greater China to 20% to 60% of total investments, including long and short positions. When the firm started in 2019, investors were told the region would be its largest, accounting for 40% to 80% of investments. The Hong Kong-based firm is debating a further reduction, it told investors in a quarterly letter.
Thall’s Asia-focused hedge fund returned almost 6.8% in the first quarter, driven by bullish bets on energy and materials as well as bearish wagers on China, according to the letter. Just over one-fifth of Asia-focused hedge funds ended the quarter with positive performances, preliminary data from eVestment showed late last week. On average, they lost 6.5% in the three months, according to a Eurekahedge gauge.