Even if the economy is cooling off, red-hot equities propelled Greater China-focused hedge funds to the top of the charts in May, scoring a spectacular 25.21% return in the first five months of the year, besting all other Eurekahedge indexes.
“China’s moderating growth outlook fails to dampen the steep climb seen in its equity markets and it remains to be seen how regulators will cap this genie back into the bottle – without breaking the bottle that is,” MSCI said in an emailed statement to NexChange.
During the January-May period, the main Eurekahedge Fund Index rose 4.37%, while the Japan index grew 5.19% and Asia ex-Japan returned 14.78%.
Chinese shares have rallied strongly in the second quarter of the year, as optimism that the government will adopt more steps to revitalize its sagging economy, as well as various measures that have been implemented to further open up the country’s capital market, fuelled strong buying interest.
Other top gainers during in the first five months of the year include the Eurekahedge Eastern Europe and Russia index, which gained 11.53%, and the emerging markets index with an 8.31% return.
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