Asia hedge funds outperform global peers on September rally

September gains of almost 5 per cent pushed Asia fund returns to 9.7 per cent for the first nine months of the year, outpacing the 8.1 per cent average increase for peers globally, according to Eurekahedge indexes. They delivered nearly 4.9 per cent in gains in September, compared with 1.5 per cent for the global average.

The Fed’s half-point rate cut last month paved the way for China to announce a barrage of easing measures without having to worry about a sharp depreciation of its currency. The MSCI China Index jumped 23 per cent in September, the most in almost two years, as Beijing cut banks’ reserve requirements and allowed millions of households to renegotiate lower mortgage rates. The rally lifted the nine-month return for the China gauge to about 25 per cent.

China-focused funds were not the only ones posting outsize gains.

Li’s Arete Macro Fund put on bullish Chinese equity index futures trades in early September. That powered a 7.5 per cent gain for the month, according to two people with knowledge of its performance, lifting returns for the first nine months above 13 per cent.

Timothy Wang’s more than US$300 million Monolith Management global technology fund surged 16 per cent last month, boosting this year’s gain to 50 per cent. It pivoted towards China in mid-September, expecting the country to adopt more accommodative and supportive policies, he said.