August Rout Means 32% of Chinese Hedge Funds Losing Money

  • Percentage of China-focused funds in the red more than doubled
  • Three straight months of losses cut industry returns to 2.3%

China’s equity-market slump is claiming more hedge-fund victims.

The percentage of Greater China-focused hedge funds suffering losses this year more than doubled to 32 percent at the end of August, according to data compiled byEurekahedge Pte. That compares with just below 13 percent at the end of July, according to the Singapore-based data provider. Funds run by long-established firms including Pinpoint Asset Management and Greenwoods Asset Management were among those that saw a reversal of fortune in August, before rebounding this month.

China hedge funds that led global peers in performance earlier in the year are feeling the sting after a stock rout induced by worries about a slowdown of the world’s second-largest economy and unwinding of excessive stock market borrowings. Three consecutive months of losses have hurt the average performance of such funds, which returned 26 percent in the first five months of the year…

August Rout Means 32% of Chinese Hedge Funds Losing Money

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