Asia-focused hedge funds delivered their strongest annual performance in several years in 2025, with Aspex Management posting a 26% return amid buoyant equity markets, rising volatility and renewed investor appetite for the region, according to a report by Bloomberg.
The flagship fund of Hong Kong-based Aspex, founded by Hermes Li and managing approximately $14bn, generated the gain in a higher-fee share class, according to people familiar with the matter. The performance capped another double-digit year for the firm as artificial intelligence investment themes and corporate governance reforms across Asia created fertile trading conditions.
The broader regional backdrop was supportive. The Eurekahedge Asian Hedge Fund Index rose 14% in 2025, marking its strongest showing since 2020, as managers benefited from sharp moves across equities, currencies and rates.
Equity-focused hedge funds led performance, particularly those positioned to capture rallies in China, Japan and South Korea. Chinese equities rebounded strongly after breakthroughs in domestic AI development reignited investor confidence, while governance reforms in Japan and South Korea drove record equity market gains and increased corporate activity.
Several Asia equity long-short and event-driven funds posted returns well above regional averages, with smaller and more nimble managers often outperforming larger peers by exploiting niche opportunities and moving quickly through less liquid markets.
Macro managers also benefited from heightened volatility during the year. Geopolitical tensions, renewed trade uncertainty following US tariff announcements, and diverging global monetary policy paths helped lift returns across rates, currency and commodity strategies. Asia-based global macro funds broadly posted mid- to high-single-digit gains, with systematic and discretionary managers alike capitalising on market dislocations.
Within the large global platforms, Brevan Howard’s MB Macro Fund, run by Minal Bathwal, gained around 6.8% during the year, while some Asia rates-focused strategies struggled amid uneven policy signals and shifting yield curves.
Multi-strategy and multi-manager funds also delivered solid results, benefiting from opportunities across equities, macro and convertible bond arbitrage, where increased market volatility improved trading conditions.
