China has caused great troubles for hedge funds, but since the last few months, it seems the tide has turned. July was a great period for investing vehicles in Greater China, where funds were up 4.1% on average, according to Eurekahedge‘s August report. Last month’s return has wiped out the losses of the region, and the index is now up 2.9% for the year.

China Hedge Funds Asset flows in July

Hedge funds year-to-date asset flows

The Asia ex-Japan index was up 2.87% in July, compared to the -.1% return on the general Eurekahedge index. Asian hedge funds have taken in performance-based gains of nearly $1.2 billion in July alone. Over the year, the net flow of Asian mandates has come up to $3 billion.

China hedge funds asset flows

Hedge funds Monthly asset flows across regions

China hedge funds grab high returns

The China CSI 300 Index rocketed to an 8.55% gain in July. Meanwhile the Hang Seng Index rose 6.75%. As macroeconomic data from China improves, with encouraging PMI numbers and a positive policy direction, return on the respective hedge funds has taken a turn for the better. Funds that are investing in China are marking their third and, in some cases, fourth consecutive month of positive returns. The Golden China Fund, which has assets close to $1 billion, grabbed a 6.2% gain through July 25, multiplying its total return to 11% for the year. The Golden China was one of the nominees for the Best Eurekahedge Greater China Fund award in 2013. The fund was up 17.5% in 2013.

China hedge funds arbitrage

China hedge funds L-S equities

More than three months of gains

The Zeal China Fund was up 3.8% through July 25, according to investment returns seen by ValueWalk. Returns for June also came out well for hedge funds that are investing in China. The Telligent Greater China Fund was up 2.1% in June, ending the first half down 2.9%. The AJIA-Lighthorse China Growth Fund shot up 5.8% in June. The Pinpoint China Fund, with $500 million under management, gained 2.75% in June. Everyone was not so lucky, however, as the CSV China Opportunities Fund was down 2% in June, increasing its total loss to 10% for the year. The firm manages $231 million.

China hedge funds fixed income

China hedge funds managed futures