Surging Chinese equities and gains in Hong Kong stocks last month drove a few Asia-focused hedge funds to beat the performance of the MSCI Asia-Pacific Index, which posted its first monthly decline this year in May, losing 1.3%.
These hedgies include Springs China Opportunities Fund which had a nearly 15% gain in May from betting on shares listed in China and in Hong Kong, according to Bloomberg. For the first five months of the year, the fund had a spectacular 48% return.
“May was a challenging month for the industry,” Bloomberg quoted Stephane Pizzo, managing partner of Singapore-based Lotus Peak Capital, as saying. “Some organizations managed nevertheless to generate outstanding returns by being correctly positioned in an increasingly complex and multi-faceted China market.”
According to Eurekahedge, China-focused hedge funds rose 25.21% in May, outperforming all other Eurekahedge indexes.
But with Shanghai stocks entering into a correction, the question is will these hedgies maintain their double-digit returns for the rest of the year or will they employ other strategies?
Photo credit: Michaël Garrigues via Flickr