Asia hedge funds experienced a strong recovery in 2024, with many achieving double-digit gains, in a surge driven by a rebound in Chinese stocks, a record-breaking equity rally in Japan, and strategic trades across diverse markets, according to a report by Reuters.
Funds such as Aspex Management, Panview Capital, and CloudAlpha Capital Management posted returns exceeding 35%, propelled by technology and artificial intelligence-related bets, including investments outside the region. Meanwhile, Ocean Arete’s macro funds, which trade across equities, fixed income, currency, and commodities, recorded returns in the high teens.
Last year marked the first time since 2020 that Asian hedge funds kept pace with global averages, according to Eurekahedge, signalling an end to a challenging three-year period marred by pandemic disruptions, geopolitical tensions, and regulatory crackdowns in China.
The MSCI China Index climbed nearly 16% in 2024, fuelled by hopes for government stimulus to revive the economy, while Japan’s Topix index surged 18%, driven by AI-driven optimism and corporate reforms, while India’s Sensex rose 8.2%.
Hermes Li’s Aspex, managing over $9bn by mid-2024, delivered a 38% return through investments in technology, industrial, consumer, and financial sectors across multiple regions. Panview Capital, meanwhile, led by former Goldman Sachs trader Ryan Thall, achieved a 41% return, its strongest performance since launching in 2019, while CloudAlpha’s Tech Fund gained 77%, supported by generative AI infrastructure investments in the US, and its newer Singularity Tech Fund surged 56% on semiconductor and data centre bets.
Nicholas Chung of RAYS Capital Partners attributed his fund’s bumper 80% return to investments in lesser-known beneficiaries of the AI boom, such as Credo Technology Group and Taiwan’s Asian Vital Components.
