(MENAFN- ValueWalk) As major hedge funds, in general, , certain Long / Short strategies, particularly in China, are keeping up. The Long / Short strategy is often burdened by short exposure during bull markets, particularly when the market beta is showered across all stocks without significant idiosyncratic differentials. During a stock market decline the strategies, , are expected to protect assets with their short exposure. With the HFRI Relative Value Total Index up just 4.01% year to date, niche categories .
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Asian-focused Long / Short hedge fund strategies up 32.92% year to date
The 2017 stock indexes are significantly outperforming expectations, with the Dow Jones Industrial Total Return index up 20.33% and the NASDAQ Composite index up 23.15%. But the place where hedge fund investors have been witnessing strong above index growth is in Asia.
The HSBC Hedge Weekly Long / Short Equity Diversified / category, for instance, is up 32.92%. Such funds focused on Japan, however, are up 11.71% while the Shanghai Composite Index up just 8.93%, by comparison. The MSCI China Index, meanwhile, is up a stout 49% year to date.
Leading the hedge fund performance category in the region, and the HSBC top 20 performer list, is Chris Choy's $105 million Quam China Focus Segregated Portfolio, up 41.66%. Quickly following in second place overall is Ching-Shan Lin's $236 million Telligent Greater China Fund. The largest player in the category based on assets under management, George Jiang's $1.7 billion Golden China Fund, is up 39.29%, rounding off the HSBC top three performers.
As the Chinese stock market has evolved from old firms leveraging cheaper labor to sporting sophisticated technology and consumer stocks as their regional economies have emerged to become support a growing middle and upper class to take the stock market higher.
Emerging markets Long / Short hedge funds up 14.36%
Asia is a distinct hedge fund performer leader, but the Long / Short strategy in emerging markets is up double digits, up 14.36%. Ed Butchart and CJ Morell, running the $95 million SR Global Fund Emerging Market Equity, are up 25.46% year to date and leading the category. The fund has a volatility of 10.55% and an annual of 8.66%.
Adrian Landgrebe and Brad Jones are running one of the larger funds in the category. Their $450 million Sagil Latin American Opportunities Fund Class A is up 16.37% year to date, slightly below the Harvey Sawkin and Ian Hague's $172 million Firebird Republics fund, up 20.06% and the category leader, and the $111 million Firebird Avroa Fund, up 20.91%.
These Long / Short hedge fund categories stand in contrast to the developed markets. The Equity Diversified / Europe is up 8.47% while Global Long / Short equity strategies are up 7.93%.
The US focused Long / Short funds are up 6.67% but are not without their standout performers. Larry Robbins $4.1 billion Partners (Cayman) is up 19.76%, pulling up the category average. Robbins was down 18.12% in 2015, a year when a then budding Valeant Pharmaceuticals scandal was heating up.
David Einhorn's $2.8 billion Greenlight Capital Offshore is up just 1.74% on the year after delivering strong 5.20% monthly performance. The $3.9 billion quantitatively-focused Renaissance Institutional Equities fund is up 12.74% year to date after delivering 20.64% for investors in 2016.
Long / Short credit strategies are also turning in noticable performance in some cases. Thestrategy markets is up 9.80% year to date, while European credit is up 6.80% and Global Long / Short credit strategies are collectively up 6.31%. The US version of the strategy is up just 4.97%. This is under Long / Short category Global Distressed Securities is up 7.44% year to date. Distressed Security debt in the US is up 6.52%.
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