Three Singapore based hedge funds that made money last year while most of their Asian peers struggled, are looking to China to fuel investment opportunities as they bid to extend their winning runs into 2023, according to a report by Bloomberg.
Dymon Capital’s Dymon Asia Multi-Strategy Investment Fund, Modular Asset Management, and Asia Genesis’ Macro Fund chalked up returns of 5.1%, 14.3% and 15.3%, respectively last year, while a gauge of regional hedge fund fund returns finished 2023 with an 8.3 per cent loss. And all three are looking to China as they position for the year ahead.
Dymon Capital believes that Chinese “revenge travelling” after the lifting of restrictions could help currencies such as the Thai baht, the Singapore dollar, the Korean won and the euro.
Modular meanwhile, is looking to long Chinese bonds and equity trades to continue to work out, while Chua Soon Hock, who manages the Asia Genesis Macro Fund is expecting more uncertainty from geopolitical tensions, supply chain challenges, inflation and interest rate pressure. The report cites a recent investor note as revealing that fund plans to trade the Nikkei 225 Index, predominantly on the short side, with two-way swings expected in the market.
The fund’s other investment ideas reportedly include long bets on the Hang Seng Index and the Singapore dollar, and tactically shorting the Japanese yen against the US dollar.
