Several Asia-focused hedge funds, including WT Asset Management, have reported exceptional performance this year, with some posting gains exceeding 100% in the first five months, as the region’s equity markets continue to benefit from a powerful AI -led rally, according to a report by Reuters.
The report cited unnamed sources familiar with the results, as highlighting that funds across Greater China, Japan, South Korea and Taiwan have capitalised on record highs in regional equity benchmarks, driven largely by exposure to AI infrastructure, semiconductor supply chains and large language model developers.
The strong performance highlights the resilience of the AI trade even amid geopolitical volatility linked to the Middle East conflict, with investors continuing to position around structural growth in computing demand and constrained supply chains.
Hong Kong-based WT Asset Management’s long-short China Focus strategy generates a net return of 103% in the year to the end of May, including gains of more than 20% in May alone. Its long-only strategy rose 67.5% over the same period, according to sources familiar with the results.
Performance was driven by positions in AI-related hardware and domestic Chinese technology companies, including semiconductor manufacturer Hua Hong Semiconductor and AI agent developer Knowledge Atlas. Public filings show WT was also an early investor in Knowledge Atlas, whose shares have surged more than 1,000% year-to-date following its Hong Kong listing.
WT Asset Management, led by veteran investor Wong Tongshu, has reportedly expanded rapidly, with assets under management now estimated at around $10 billion.
Other hedge funds in the region have also posted strong returns. E20 Capital, a Hong Kong-based manager launched in 2025, returned 136% in the first five months of the year, supported by positions across memory, optical components and CPU-related equities within its Global Opportunity Investment Fund.
Separately, long-established technology-focused investor Trivest Advisors delivered gains of 88.9% over the same period.
The rally has been underpinned by strong performance across Asian equity markets, with South Korea’s KOSPI nearly doubling year-to-date, Japan’s Nikkei 225 up around 31%, and Taiwan’s benchmark index rising approximately 53%. China’s Shanghai Composite has also reached its highest level in more than a decade.
Investors say the region continues to offer under-recognised opportunities within the AI supply chain, particularly in segments that remain less covered by global market participants.
