China-focused hedge funds outperform with double-digit returns

Published 24/07/2025, 09:18
© Reuters.

Investing.com -- Hedge funds focused on Chinese equities delivered double-digit returns in the first half of 2025, outperforming their global peers.

The strong performance was driven by a rebound in Hong Kong stocks and strategic investments in artificial intelligence and "new consumption" companies, according to industry data.

The Greater China Equities Hedge Fund Index tracked by With Intelligence recorded a 15% gain in the first six months of the year, surpassing the data platform’s regional and strategy benchmarks.

Among the standout performers, Hong Kong and Shenzhen-based Triata Capital posted a 45% return in the first half and reached 62% by July 15, following a 19% gain in 2024.

The $1.2 billion hedge fund benefited from concentrated investments in undervalued AI software, data centers, internet platforms, and selected consumer stocks in sectors like education and hotels.

Fund managers attributed part of their success to agile use of hedging tools, which helped minimize losses during market turbulence in April. That volatility was triggered when U.S. President Donald Trump announced "reciprocal tariffs" on all trading partners.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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