Hedge Fund Bludgeoning All Comers With Rebar, 2,100% Returns

Meet Wang Bing.
By W.carter (Own work) [CC BY-SA 4.0], via Wikimedia Commons

via Wikimedia Commons

Wang Bing has one word for you: rebar. Chinese rebar, to be exact. Chinese rebar futures, to be even more exact. He’s turned in a 2,100% return on the stuff over the past year-and-a-half, shorting the hell out of it late last year and then going long in the first half of this year. And Chinese rebar futures don’t just have a great recent past. There’s a great future in rebar. At least if prices dip a little.

He’s looking to re-open bullish bets on rebar when prices fall to around 2,300 yuan a metric ton. The contracts have risen 31 percent this year to 2,338 yuan.

“How strongly the government pushes for capacity reduction will decide how much prices go up,” said Wang, whose Guli Trend fund now holds just 49 million yuan ($7.4 million) after he withdrew some of his own initial investment. The fund was started with money from Wang and a small group of clients and is currently closed to new investors, he said in an interview at his Shanghai office.

Sorry: You’ll have to just start your own Chinese rebar futures fund.

This Hedge Fund Made 2,100% From World’s Most Extreme Market Mania [Bloomberg]