Chris Zhang,CAIA’s Post

Hong Kong dominates Asia's hedge fund ecosystem. Hong Kong is home to more than 500 hedge funds managing over $170 billion in assets, the highest in the APAC region. In addition to Millennium spin-out Symmetry Investments, Hong Kong has some of Asia's largest hedge funds. Global hedge fund giants Citadel, Marshall Wace, and Point72 have a strong presence in Hong Kong. Despite a challenging year for Asia hedge fund launches, a few high-profile Hong Kong-based hedge funds made a debut recently including Pascal Guttieres' Viridian Asset Management. Hong Kong holds a 40% share in Asia's hedge fund market. Source: With Intelligence #hedgefunds #asia

SVI winds down China-focused hedge fund Hong Kong-based hedge fund Strategic Vision Investment has wound down its main Value Multiplier Fund which invested in Chinese equities according to Reuters. SVI liquidated the holdings of the long-short fund at the end of July and is returning its external capital to investors, the sources, who are directly aware of the developments, said. The hedge fund took the step as it sees limited room to expand its China-focused long-short investment strategy, given geopolitical tensions and shifts in the investment landscape in the region, one of the sources said. Founded by Ken Xu as BosValen Asset Management in 2014 and rebranded as SVI six years later, the firm managed more than $1 billion in assets last year. It now plans to use its own capital and investment from new strategic partners to form a multi-family office, or an entity to manage the wealth of rich families, one of the sources said. The Value Multiplier Fund managed more than $400 million at its peak and returned a loss of 1.1% last year, according to a source familiar with the fund's performance. The source did not say when the fund hit its peak in assets but added it had generated an annualised return of 28% since 2020. #hongkong #hedgefund #china

Hedge fund industry reaches US$4.3 trillion milestone in the first quarter. 💵 According to HFR, the global hedge fund industry ended the first quarter with a record $4.3 trillion in assets.  💪 This is the sixth consecutive quarter of growth for global hedge funds as the industry added US$190 billion in assets this past first quarter, of which, US$16.6 billion is net new money, especially for equity and event-driven hedge fund strategies. The HFRI Fund Weighted Composite index was up 4.52% overall in the first quarter. 📈 HFR said in a statement that portfolio managers took advantage of an environment involving unprecedented geopolitical risks and macroeconomic uncertainties in the first quarter. If you are an alternative fund manager looking to increase your AUM, register for access and let us help you tap into the growing Asia wealth capital pool: https://lnkd.in/g92MkP4g #Fintech #WealthTech #InvestTech #FundTech #AlternativeInvestments #HedgeFunds #assetmanagement #wealthmanagement #portfoliomanagement #investmentmanagement

China Probes Hedge Fund With 795% Product Gain, Owner Missing. Ruifengda suspected of alleged illegal activities: regulator. Regulators have been tightening scrutiny over the industry. China is probing a hedge fund firm with stellar returns after it stopped repaying investors, following tightening scrutiny on the 5.5 trillion yuan ($760 billion) industry. https://lnkd.in/gPKHFgM4 China Probes Local Hedge Fund for Suspected Illegal Activities. "China’s securities watchdog said it is investigating hedge fund Zhejiang Ruifengda Asset Management Co. for suspected illegal activities, while media reports said the fund has failed to pay investors seeking redemptions and that the controlling shareholder is missing." https://lnkd.in/gPKHFgM4

🚀 Why Hedge Funds Are Thriving in Today’s Market At the Goldman Sachs Alternatives Summit, experts shared why now might be one of the best times to invest in hedge funds. Jack Springate, Global Head of Hedge Funds at Goldman Sachs, highlighted how the current environment of high asset performance disparities and increased cost of capital is creating opportunities for skilled investors to generate strong returns. “This is a higher dispersion environment,” he said, “and that should feed through to higher levels of alpha.” But not all hedge funds are created equal. Springate emphasized, “It really matters which hedge funds you partner with.” With their strategies becoming less dependent on the broader market, he said, “Hedge funds have really moved from being an alternative to equities to being an alternative to fixed income.” 👉 A key takeaway: Hedge funds today are not just about diversification—they’re about smarter, more predictable performance. #Investing #HedgeFunds #GoldmanSachs #PortfolioStrategy #Alpha

Driven by both opportunity and necessity, China onshore hedge funds are increasingly setting their sights on the global stage. Securing a Securities and Futures Commission (SFC) No. 9 license, the gateway to international expansion, has become a badge of honor, with around 95 onshore hedge fund management companies now holding the coveted permit. Among them, the number of top hedge funds (AUM above CNY 5 billion ($ 687.58 million)) reached 37, 25 with AUM above CNY10 billion ($ 1.38 billion), and 12 with AUM from CNY5 billion ($ 687.58 million) ~CNY10 billion ($ 1.38 billion). From the investment model, before 2020 discretionary hedge funds accounted for 75% of top hedge funds going overseas; after 2020 quantitative hedge funds accelerated, accounting for nearly 60% nowadays. However, navigating the international arena presents significant hurdles to those Chinese hedge funds. First of all, adapting to different regulatory frameworks, operational complexities, and investor expectations requires significant time and resources. Secondly, attracting and retaining international investors hinges on delivering consistent, compelling returns in a fiercely competitive landscape. If their overseas hedge funds want to be profitable it will take at least 3 to 5 years, which requires domestic hedge fund companies to have substantial resources. While the journey won't be without its challenges, the potential rewards of global expansion are significant. Success will depend on a combination of strategic foresight, operational agility, and a relentless focus on generating alpha in a rapidly evolving investment landscape. Good Luck, everyone!#China #hedgefunds #going #overseas #Hongkong #licence

Systematic hedge funds, using algorithms to track market trends, have shown remarkable performance in the first quarter of 2024, surpassing other fund strategies. With an average gain of nearly 9% in the initial two months, against the industry average of 2.6%. The success of these funds reflects the volatility in global markets. While the US S&P 500 index increased by over 11%, Hong Kong's Hang Seng index dipped by about 2%, and Japan's Nikkei index increased over 20%.

Hedge fund allocations to China at five-year low, says Goldman Sachs: (Hedgeweek) Goldman Sachs has revealed that hedge fund allocations to China have reached their lowest level in five years, amid heightened investor apprehensions about the country’s economic prospects and regulatory landscape, according to a report by Reuters. To read this […] #hedgefund #portfoliomanagement #capital

Starting today, August 1, China's $715 billion hedge fund industry will face increased scrutiny as new regulations come into effect. These guidelines require hedge funds to meet higher asset thresholds to continue operations and adhere to stricter rules on investments and marketing. The regulatory shift follows a recent crackdown on computer-driven "quant funds" by Chinese regulators, reflecting Beijing's ongoing efforts to tighten oversight of the financial industry. As a result, some firms may need to seek fresh capital to meet higher asset thresholds or face the possibility of closure. https://lnkd.in/eFAvikrp

In the latest Billion Dollar Club (BDC) report, New York remains the world's billion-dollar hedge fund hub, with 165 firms holding one-third of BDC assets after adding a further $52bn in H1. London remains Europe's largest hedge fund hub by assets. Capital managed by hedge funds based there rose 6.7% through the first six months to reach $534bn. Hong Kong-based BDC assets jumped $6.6bn, widening the gap over nearest Asia rival Singapore.