China Hedge Funds Record 5.98% Loss In January

Greater China-focused hedge funds posted their first month of losses since August 2015 and were down 5.98% in January with its long/short equity heavyweight declining 6.24% as Chinese equity markets came under pressure during the month.

The loss came in the backdrop of the country’s main CSI 300 stock index declining 21.04% during the month, according to data released by industry data tracker Eurekahedge.

Globally, hedge funds were down 0.91% during the month, though outperforming underlying markets as the MSCI World Index3 declined 5.71% over the same period.

All regional mandates posted negative returns during the month, with Asia-focused hedge funds posting the steepest decline.

Asia ex Japan hedge funds were down 3.30% followed by Japan hedge funds, which were down 2.44%.

Across regional mandates, Asian long/short equities hedge funds performed the worst, down 3.24% over the same period.

Event driven funds have posted the worst monthly return among all hedge fund strategic mandates, down 3.45% in their worst performance on record since 2011.

Meanwhile, CTA/managed futures managers have posted the strongest gains during the month, up 2.50% helped by short positions in Asia equity futures and energy.

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