From Investing.com: 2024-04-08 03:40:46

Billionaire Zhang Lei’s Hillhouse Investment saw hedge fund assets drop 1/3 to $27.5 billion in 2021 due to struggles in Chinese tech, consumer goods, and healthcare sectors. Chinese stocks have slumped for 3 years, with US investors pulling out due to underperformance. Hillhouse shifts focus to non-China equities amid market uncertainties.

Hillhouse’s HHLR portfolio experienced a substantial decline in assets, with a top holding BeiGene Ltd’s shares dropping over 60% since 2021. A unit under investigation by Chinese regulators adds to HHLR’s challenges. China-focused offshore hedge funds facing fundraising pressures have shifted investment focus away from China to non-China equities.

Asian hedge funds saw a net outflow of $15.6 billion last year, with China-focused hedge funds reporting a 5% loss on average in 2021. The Chinese government’s efforts to stabilize the stock market have led to improved performance this year. A rebound in the Chinese economy could restore confidence, but geopolitical uncertainties remain a key factor.



Read more at Investing.com: China’s Hillhouse logs hefty decline in hedge fund assets in 2023 By Reuters