Asia Hedge Funds Post Biggest Annual Returns Since the Pandemic

Asian hedge funds bounced back strongly in 2024, with many delivering double-digit gains amid a recovery in Chinese stocks, a surge in Japan’s equity markets, and profitable trades in new territories, Bloomberg reports.

Equity funds like Aspex Management, Panview Capital, and CloudAlpha Capital saw returns exceeding 35%, driven by tech and AI-related bets. For example, Panview achieved a 41% return, largely from a significant position in AppLovin Corp., while CloudAlpha’s Tech Fund soared 77% on AI infrastructure investments.

Asia’s high yield credit market also rebounded, with funds like L&R Asia Credit Alpha returning 25%, benefiting from improved sentiment and active trading. Macro funds like Arete Macro Fund posted strong gains, up 17.8%, fueled by bets on Chinese equities and the US dollar.

This marked the first time since 2020 that Asian hedge funds matched global averages, reversing years of losses caused by COVID, geopolitical tensions, and China’s crackdowns. While optimism has returned, some managers remain cautious about overpricing and bullish sentiment in the US market.