Chinese stock pickers lead global hedge fund gains as markets swing

Hedge funds focused on Chinese equities posted double-digit returns in the first half of the year, outperforming global peers, fuelled by a rebound in Hong Kong stocks and bets on artificial intelligence and “new consumption” firms.

Some fund managers said their more agile use of hedging tools also helped cushion losses during the market turmoil in April, triggered by U.S. President Donald Trump’s announcement of “reciprocal tariffs” on all trading partners.

The Greater China Equities Hedge Fund Index tracked by With Intelligence delivered a 15% gain in the first half, topping the hedge fund data platform’s regional and strategy benchmarks.
Hong Kong- and Shenzhen-based Triata Capital rose 45% in the first six months and 62% by July 15, following a 19% gain in 2024.

The $1.2 billion hedge fund has reaped rewards from its concentrated bets on undervalued AI software, data centers, internet platforms, and selected consumer stocks such as education and hotels.
“Even following this year’s news on DeepSeek, we still see underappreciated upside in China’s AI software space,” said Sean Ho, founder and chief investment officer at Triata, which leverages a significant amount of alternative data.

Source: Reuters