Skip to main content

Attention China Hedge Fund People

This is not a drill.
  • Author:
  • Updated:


The news, as you no doubt anticipated, is not good.

Greater China hedge funds plunged an estimated 10 percent in August, putting them on track for their biggest decline since at least January 2000, according to preliminary estimates from Eurekahedge Pte. The Orchid China Master Fund, a $304 million strategy managed by Hong Kong-based Orchid, fell an estimated 7.3 percent, according to a month-end investor update obtained by Bloomberg News. APS’s Greater China Long/Short Fund declined 7.2 percent in the month through Aug. 28 as the firm’s China A Share Fund fell 5.5 percent as of Aug. 21, according to a month-end update….

“Greater China hedge funds are on track to show the worst three month returns in at least a decade,” said Mohammad Hassan, an analyst with Eurekahedge in Singapore. “It’s not a surprise given the funds’ limited ability to short the stock markets in China.”

Their pain is the black-swan farming world’s pleasure, however, as even tail-risk funds notspiritually managed by Nassim Taleb from atop a mountainous Aegean island are enjoying everyone else’s nightmare.

Three of 36 South’s strategies, which bet on rising price swings, gained more than 10 percent in August, based on initial estimates, Chief Investment Officer Jerry Haworth said in an interview. That would be the best monthly return in at least three years for its main fund, according to the manager….

“Between March and July, when volatility was really getting quite low, we were saying: it doesn’t get much better than this,” Haworth said. “Volatility is like a canary in a coal mine. When it’s low it’s almost telling you to buy it.”

China Hedge Funds Face Worst Month in 16 Years After Carnage [Bloomberg]
China Shock Boon for This Hedge Fund That Bets on Volatility [Bloomberg]


By SteeleatHaymanCapitalManagementLP (Own work) [CC BY-SA 4.0], via Wikimedia Commons

Kyle Bass Explains It All, But Mostly He Explains China

But he really did say some stuff about some other things, too, if you’re interested.

LTCM Vets To Give Torpedoing Global Economy Another Shot In China

Everything changes except LTCM's timing, which remains really bad.


John Paulson Obviously Thinks President Trump Is All About That Trade With China Life

JP is moving money like he knows something about his homeboy Trump and "Gyna."

People Still Launching Hedge Funds Faster Than They Can Fail

Well, the numbers are finally in for 2012 and it was, relatively speaking, a bloodbath for hedge funds, with more going to their grave or down the drain than in 2010 or 2011. But there were still 235 more hedge funds at the end of the year than at its beginning, because those who have previously shuttered a hedge fund due to their failure to raise/make enough money gave it another go last year. Look for more of the same this year, as fresh-faced and not-so-fresh-faced hedge fund managers hang out a new shingle for a few months, only to find out that investors are only interested in having Ray Dalio manage their money.