Chinese equities are set to outperform their global peers during the first six months of this year as China fully reopens following the lifting of the country’s strict Zero Covid restrictions, according to hedge fund Carrhae Capital.
While the firm’s £322 million long-short strategy returned 15.3% last year, after fees, the report cites Singapore-based data provider Eurekahedge Pte as revealing that by comparison, emerging-market long-short equity hedge funds overall lost about 7% in the same period.
According to Ali Akay, Carrhae Capital’s London-based chief investment officer, the fund’s 2022 returns came on the back of long and short bets on consumer and e-commerce companies in China, information technology companies in Asia, financials across the region, and energy and materials companies operating across global emerging market. It also had investments in Turkey and the Middle-East.
“We have entered the year with a very bullish stance on China and on the margin we have been taking profits,” said Akay. “However, we still see plenty of upside.”
