Brilliance Asset Management, one of Asia’s largest China-focused hedge funds, chalked up a 16% loss in October after a bet on electric vehicle maker Li Auto went awry, according to a report by Financial Post.
The report cites unnamed sources as revealing that the loss left the Hong Kong-based firm’s flagship fund down 40% YTD at the end of October, despite a strong performance in June.
According to data from Eurekahedge, other China-focused long-short funds have posted an average decline of 21% over the same period.
The firm’s smaller retail UCITs product – Brilliance China Core Long Short Fund – has also struggled so far in 2022, dropping 36% at the end October, according to data from Refinitiv.
Regulatory filings reveal that Brilliance saw its assets under management fall to $2.7 billion in October from $4.9 billion in February.
