Asian hedge funds have achieved impressive returns, with the Eurekahedge Pte index showing a cumulative return of 9.7% for the first nine months of the year. This figure surpasses the global average return of 8.1% for similar funds. In September, Asian funds recorded a near 4.9% gain, compared to the global average increase of just 1.5%.
The strong performance is primarily attributed to the recent surge in the Chinese stock market, which has helped Asian hedge funds outperform their global counterparts after three years of lagging behind. Contributing to this rally were several stimulus measures announced by China, including a 0.5% reduction in the reserve requirement ratio for financial institutions and adjustments to mortgage rates and down payment requirements.
As a result, the MSCI China Index saw a significant 23% rise in September, marking the largest increase in nearly two years and boosting its nine-month return to approximately 25%. Notably, funds like Quantedge Capital Pte., Ocean Arete Ltd., and Monolith Management have benefited from betting on proactive Chinese policies.
Monolith's global tech fund, boasting over $300 million in assets, surged 16% last month and has gained 50% year-to-date. The fund's double-digit returns have been driven largely by Chinese stocks such as Pinduoduo, Futu, Beike, and TAL Education Group.
Timothy Wang of Monolith Management anticipates further favorable policies from China, especially following potential interest rate cuts by the Federal Reserve. Meanwhile, Arete Macro Fund saw a 7.5% rise in September due to bullish positions on Chinese stock index futures, contributing to a year-to-date return exceeding 13%.
Investors are reminded of potential market risks and advised to consider their financial goals and circumstances before making investment decisions based on this information.
