Greater China-focused hedge funds was down 6.55% in August, having managed to reduce their losses as the CSI 300, Shanghai and Shenzhen composite indices declined 11.23%, 12.49% and 15.18% respectively during the same period, according to industry data tracker Eurekahedge.
Hong Kong-based Asia Frontier Capital, Singapore-based LyGH Capital, and CITIC Securities International Fund Management Limited are among the top 20 performing hedge funds globally in 2014, according to industry data tracker Preqin. Long-biased AFC Asia Frontier Fund recorded net returns of 37.58% last year, while GH China Century Fund and CITIC China Alpha II Fund Limited, both employ a long-short equity strategy, returned 37.19% and 35.88%, respectively.
Asia ex-Japan hedge funds lead global peers with year-to-date returns of 6.66%, due in large part to a 25.79% rise in Indian equities since the start of the year, according to the latest data released by hedge fund research firm Eurekahedge. Funds investing in North and Latin American came in second and third place, delivering returns of 5.21% and 3.71% respectively. Japan focused funds returned 2.92%, while European managers came in last place at 1.31%.
Private equity funds returned US$568 billion in capital back to their institutional investor backers globally last year, up significantly from US$381 billion in 2012. It is also the highest annual total capital return ever recorded, according to data released by private equity research Preqin.
Greater China-focused hedge funds were the star performers during July, returning 3.82% following an overall disappointing start to the year. In contrast, Asian ex-Japan hedge funds gained 2.63% and global hedge funds saw a negative return of 0.12% last month, according to data released by hedge fund tracker Eurekahedge.
Despite a greater concentration of capital being raised among larger private real estate funds in recent years, smaller funds have often outperformed larger funds, according to a report by research firm Preqin.