China’s Best-Performing Hedge Fund Is Up 138% This Year. Here’s Its Next Play.

Carl Hazeley

6 months ago2:52 mins

China’s Best-Performing Hedge Fund Is Up 138% This Year. Here’s Its Next Play.

Zhao Yuanyuan – a hedge fund manager at Shenzhen Qianhai JianHong Times Asset Management Co – has made some big bets on infrastructure, energy producers, and Covid-19 drugmakers lately, while shorting the rest of the market. And it’s paid off: her fund has climbed 138% this year, ranking it the best-performing of over 20,000 private Chinese funds. And now she’s found her next target: buying China’s dip.

Why is Zhao optimistic about China now?

China’s key stock market index has had a terrible year so far: it’s dropped 20%, compared to even global stocks’ 16%. But Zhao’s probably betting that investors’ pessimism has peaked. And it’s easy to see her point: lockdowns are easing in places like Shanghai and an estimated $5 trillion worth of economic support has already been announce

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