Surged over 40%! These hedge funds betting on China "made a fortune"

Wallstreetcn
2024.10.03 08:30
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In the past month, several bullish Chinese hedge funds have made huge profits due to the stock market rebound. Triata Capital China Fund surged by 44%, while Blue Creek China Fund rose by over 30%. Hedge fund companies stated that the valuation of the Chinese market is still very cheap

With the recent surge in the Chinese stock market, overseas hedge funds have been heavily betting on Chinese assets and reaping significant rewards.

In September, hedge funds such as Triata Capital and Yunqi Capital, which focus on Chinese assets, saw monthly returns exceeding 25%. Triata Capital's China fund in particular surged by nearly 44%.

According to statistics:

  • Triata Capital's China fund surged by nearly 44% in September, with a year-to-date return of 55%.
  • Blue Creek's China fund rose by almost 31% in September, with a year-to-date return of 15%.
  • Yunqi Capital's China fund increased by over 26% in September, with a year-to-date return of 32%.
  • APS Asset Management's China fund rose by 20% in September, with a year-to-date return of 19%.
  • Pinpoint's China fund rose by nearly 12% in September, expanding its annual return to 18%.

MSCI China Index soared by 23% in September, marking the largest increase since November 2022. According to a report by Goldman Sachs on September 30th, hedge fund clients focusing on Chinese assets achieved an average weekly return of 6%, setting a record for the best weekly performance to date.

This epic rebound has brought substantial profits to Triata and helped hedge funds like Blue Creek recover from earlier losses.

Triata manages around $770 million in assets and has been focusing on purchasing stocks with strong fundamentals, good revenue and profit performance, and low valuations over the past two years.

Blue Creek, managing $133 million in assets, has been bullish on the Chinese market for the past year and plans to continue comprehensive investments. Zhang Xiaogang, the founder of the fund, stated that valuations in the Chinese market are still very cheap.

Nicolas Amstutz, a partner at Singapore's Lotus Peak Capital, pointed out that the sudden turnaround in September has brought significant returns to funds betting on China, believing that the future environment will continue to favor China-focused Alpha strategies.

In addition, hedge fund giant David Tepper recently publicly stated that he will increase the allocation of Chinese assets and has purchased more "everything China" in the US after the interest rate cut, such as ETFs, futures, and more

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