China-focused hedge funds including Triata Capital delivered standout gains in the first half of 2025, outperforming global peers on the back of a sharp rebound in Hong Kong-listed equities and bets on AI and emerging consumption trends, according to a report by Reuters.
The Greater China Equities Hedge Fund Index tracked by With Intelligence rose 15% in H1, outstripping all other regional and strategy benchmarks. Several top-performing managers credited concentrated exposures to undervalued AI stocks, innovative consumer names, and nimble hedging strategies during turbulent market periods.
Hong Kong-based Triata posted a 45% gain through June—surging to 62% by mid-July—driven by focused positions in Chinese AI software, data centres, and internet platforms.
Consumer-themed strategies also proved highly profitable. FountainCap Research & Investment, managing $2bn, returned nearly 22% in its long-only fund, thanks to the rise of China’s so-called “cute economy.” Its top holding, toy maker Pop Mart, soared over 200% year-to-date.
Despite a sharp sell-off in April – triggered by former US President Donald Trump’s announcement of new reciprocal tariffs – many managers used aggressive hedging to protect returns. Golden Nest Capital, a low-volatility-focused fund, noted that reducing net exposure during that period helped it notch a 12th consecutive month of positive performance.
With major indices like the Hang Seng Index and MSCI China gaining 20% and 16% respectively in H1, global allocators are starting to take notice. Simon Hopkins, CEO of Singapore-based Milltrust International, said his firm plans to ramp up China exposure in the second half, citing the country’s edge in AI and precision manufacturing.
