Despite Warnings Of Collapse, Hedge Funds Investing In China Outperforming

After coming off a muted 2016, hedge fund performance in 2017 has been holding close to their benchmarks if not exceeding them in many sub sectors. One such niche are those hedge funds investing in China A-Shares. The group 38 hedge funds that invest in premium stocks in the increasingly an increasingly capitalistic region of the world are dramatically outperforming their stock market benchmark year to date. The Eurekahedge China A-Share Investing Hedge Fund Index, for instance, is up a strong 10.33% year to date after posting sagging 2016 returns.

The strong returns come as the Shanghai A Shares Index of top stocks in the region is up only 2.89%. With hedge fund managers such as Kyle Bass loudly betting...