Latest news with #EvolutionAssetManagement
Yahoo
30-05-2025
- Business
- Yahoo
China Hedge Fund Buying April Dip Extends Decade Gain to 1,485%
(Bloomberg) -- A Chinese hedge fund that bought the dip in April when the nation's stocks plunged on fresh US tariffs has jumped 20% this year, extending its total return since inception a decade ago to 1,485%. NYC Congestion Toll Brings In $216 Million in First Four Months The Economic Benefits of Paying Workers to Move Now With Colorful Blocks, Tirana's Pyramid Represents a Changing Albania NY Wins Order Against US Funding Freeze in Congestion Fight NY Congestion Pricing Is Likely to Stay Until Year End During Court Case Evolution Asset Management founder and Chief Executive Officer Wang Yiping pledged on social media in early April to bottom-fish China assets, even as investor angst grew over the escalating trade war. The move paid off, underscoring the advantages of combining human judgment with computer algorithms during wild market swings. 'Our confidence to buy the dip at the time came from the analytical framework we consistently emphasized — one that combines data with logic,' Wang said in a statement to Bloomberg News. 'Whether viewed from the perspective of odds or probability, adding allocations to Chinese assets was a rational choice.' Evolution Asset, which Wang set up in 2014 as a discretionary hedge fund that now manages about 13 billion yuan ($1.8 billion), has switched most of its assets into quantitative products, seeking greater efficiency and stability from computer models. The mixed-strategy fund accounts for about 40% of assets under management. After US President Donald Trump's announcement of so-called reciprocal tariffs sent global stocks tumbling, Wang said April 4 on his Weibo social media account that he would buy at least 500 million yuan of China-related assets with cash in his discretionary funds. He said he wouldn't buy 'a single penny' of US assets. As China markets slumped on April 7 when trading resumed after a holiday, Wang said he would buy core China assets like consumer stocks on the mainland and Hong Kong-listed internet firms. He declared the next day he'd filled up all positions. 'If China and the US truly halted trade relations, China will undoubtedly prove more resilient,' Wang said in his written reply, citing the nation's manufacturing prowess. Evolution's Multi-Strategy No. 1's 19.6% gain this year through May 23 extended the total since inception in March 2015 to 1,485%, according to data tracked by Shenzhen PaiPaiWang Investment & Management Co. It's the top-ranked fund over the past 10 years through April 30, the data show. The fund, which is a combination of quant and discretionary strategies, was the third-best long-only stock fund among firms managing more than 10 billion yuan for the first four months of the year, with a 15% gain. The multi-strategy series has evolved over the past decade, with its quant allocations moving up and down in line with market conditions before settling at around 90% early this year. That seems to have worked well, with the longest-running No. 1 fund beating the CSI 300 Index in all the past nine full years except 2024 — with an average excess return of about 18 percentage points. The main Evolution fund has also outperformed Hong Kong's equity gauge this year and over the past decade. The Hang Seng Index, which includes many Chinese stocks, has gained almost 16% this year, and lost about 15% over the past decade. Evolution Asset has retained some discretionary — or human — strategies because quant models can't always handle unprecedented events due to a lack of historical data, he said. 'The stock market is by no means a purely mathematical game, and no model can ever fully reflect reality,' he said. While the company has since 2016 started shifting to quant strategies, it abandoned factors generated by machine learning in 2021 and has since been only using those written by researchers as they are explicable with low correlation. Such 'logic-type' factors, like ones designed to address long-tail risks, have helped generate stable excess returns in its quant products, Wang said. Its CSI 500 enhanced index fund beat the benchmark by 2.5 percentage points for the week of April 7, the best among top quants tracked by Guolian Minsheng Securities Co. That compares with an average excess return of 0.25 percentage point among funds tracked by China Merchants Futures Co. YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom Mark Zuckerberg Loves MAGA Now. Will MAGA Ever Love Him Back? Millions of Americans Are Obsessed With This Japanese Barbecue Sauce Inside the First Stargate AI Data Center How Coach Handbags Became a Gen Z Status Symbol ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
30-05-2025
- Business
- Bloomberg
China Hedge Fund Buying April Dip Extends Decade Gain to 1,485%
A Chinese hedge fund that bought the dip in April when the nation's stocks plunged on fresh US tariffs has jumped 20% this year, extending its total return since inception a decade ago to 1,485%. Evolution Asset Management founder and Chief Executive Officer Wang Yiping pledged on social media in early April to bottom-fish China assets, even as investor angst grew over the escalating trade war. The move paid off, underscoring the advantages of combining human judgment with computer algorithms during wild market swings.
