Chinese macro hedge fund Shanghai Banxia Investment Management Center has called the bottom of the country’s stock rout and predicted that the country is on the verge of a bull market.
Star Chinese macro hedge fund Shanghai Banxia Investment Management Center has called the bottom of the country’s stock rout and predicted that the country is on the verge of a bull market.
The report cites an investor letter as revealing that the firm, which manages more than 10 billion yuan（$1.4 billion), has rebuilt net-long positions in the mainland-traded A-share market to 40% as of the end of last month. The firm, which is run by founder Li Bei, had reportedly maintained a low level of exposure since June before adding to its holdings last month.
“Standing at this point in time, we’re no longer pessimistic on A-shares,” the company, led by founder Li Bei, wrote in the letter dated Oct. 10. “We’re facing a very good opportunity to gradually buy the dip and long A-shares.”
Shanghai Banxia Investment Management Center’s Banxia Stable Fund topped rankings in 2020 with an annual gain of 258%. The firm’s lower-volatility Banxia Macro Fund lost 3% this year up to the end of September, reducing gains since inception in 2017 to 225%. By comparison, the CSI 300 Index fell 23% in the first nine months.
