Early pandemic bets paid off big for a few Asia hedge funds
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BL InkA few Asia based hedge funds benefited from early insight into the pandemics impact to post outsized gains this year, while regional peers are on track to outperform global funds for the eighth time in 12 years.
Funds overseen by Investment Management Ltd, Management (HK) Ltd, Capital Management Ltd and Capital returned more than 50 per cent this year to the end of August, making money on bets ranging from electric cars to e commerce, while some shorted hard hit tourism sectors.
‘s $2 billion flagship fund returned more than 60 per cent in the first eight months, said a person with knowledge of the matter., which oversees more than $3 billion, gained 54 per cent, said another person. ‘s global technology fund surged 135 per cent in the same period, and ‘s $1 billion fund jumped 133 per cent, according to investor newsletters seen by Bloomberg News.
The average return for Asia funds was more than 8 per cent, double the global funds gain of 3.9 per cent, according to Singapore based Eurekahedge Pte.
Also read: Here’s what investors with $3.4 trillion are buying during Covid
Vantage viewProximity to China, the initial epicenter of the Covid 19 outbreak, gave the funds a vantage point to see how the pandemic would play out elsewhere. That prompted them to either short companies expected to suffer long term damage, or bargain hunt stocks primed for a quick rebound. Even before hermes constance messenger bag sapphire replica real leather
March, the four firms gravitated toward technology and e commerce industries that have been bolstered by the virus.
The flexibility to join attractively priced private deals also helped them beat the 23 per cent advance of the MSCI World Growth Index., and invested a combined $115 million in a private preferred share issue by Xpeng Inc. They more than doubled their money after the Chinese smart electric vehicle maker went public in August and surged afterwards.
Here’s a summary of some of the funds bets:’s flagship fund avoided the March carnage and made money from bearish wagers on US and European companies, such as those in tourism, that were hardest hit by Covid 19, a person familiar said.
Closer to home, it profited from bullish calls on Asian e commerce platforms and data centers in China, including a private funding round of Japanese payment and e commerce platform Hey, according to a statement. also made money from Chinese and Japanese consumer stocks, such as makers of snacks and seasonings, and scored further wins from consolidation among Chinese auto dealers, the person said.
The firm, helmed by Falcon Edge Capital alumnus George Yang, oversees about $2.5 billion. Its smaller, more concentrated fund returned more than 80 per cent in the first eight months., a long term fundamental stock picker, scored gains from regional industry leaders whose shares were pummeled in March even though their operations were hardly affected by the pandemic. This included e commerce stocks such as Sea Ltd, the Tencent Holdings Ltd backed company benefiting from the surging popularity of internet games and e commerce in South East Asia, a person said. Singapore based Sea has jumped almost four fold this year.