Asia-focused hedge funds saw a dramatic performance split in April, as volatility triggered by US President Donald Trump’s abrupt tariff policy swings created both standout winners including True Partner Fund, and severe laggards across the region, according to a report by Bloomberg.
Volatility specialist True Partner Fund gained 5.3% in its best month in over five years, while MY.Alpha Management’s Japan-focused strategy delivered a 6.5% return, capitalising on company-specific event trades and heightened corporate activity.
In contrast, macro-focused strategies struggled amid shifting policy signals. Arete Macro Fund, managed by Ocean Arete’s Will Li, slumped 9.2% – its worst monthly performance since inception in 2012 – while the Ariose China Growth Fund fell 10%, hit hard by weakness across Greater China equities.
True Partner, which trades mispricings in listed index options across the US, Asia, and Europe, capitalised on early-month declines sparked by “Liberation Day” tariffs. According to its April letter, most of its gains were captured during the initial selloff, lifting the fund to +7.9% YTD.
MY.Alpha’s gains reflected a different approach. Led by Masahiko Yamaguchi, who spun out from York Capital Management Asia in 2021, the fund benefited from corporate event-driven trades in Japan, where structural reforms and a return of inflation have driven a resurgence in dealmaking. The firm’s flagship Japan strategy is now up 9.6% YTD, while a broader Asia multi-strategy vehicle returned 0.8% in April and 5.4% for the year.
Meanwhile, the macro-heavy Arete Fund has faced a stark reversal in 2025. Its 10% year-to-date decline contrasts with an 18% gain in 2024, when bullish bets on China and the US dollar paid off. In April, however, rising uncertainty and rapid market reversals forced the fund to cut risk, leading to a steep drawdown, according to investor communications.
The pullback also caught Ariose’s China Growth Fund off guard. After a strong +13.5% gain in March, the strategy plunged the following month amid steep losses in Hong Kong and mainland equities. The fund is now down 5.3% for the year.
