Policy stimulus conducted by the Chinese government resulted in a market rally. Fundamental long/short managers reported the best performances since November 2022.
Asia and China managers' gains came as a result of beta China exposure with a smaller impact by alpha. Japan managers didn’t generate as good results as those in China but still managed to outperform the benchmark with a positive alpha contribution.
Dispersions between Asia-located managers reported very different performances, but overall outperforming their peers in other regions.
Asian fundamental L/S funds after a trend of leverage decline, saw a rise in leverage during last week.
