While Chinese stocks are underperforming overall, a number of China-focused long-short equity managers are seeing strong returns (according to Goldman Sachs) in 2024.
But despite solid performance, Gwyn Roberts shares a few of the challenges facing China-centric funds with Henry Ren of Bloomberg. Most notably, the biggest issue seems to be raising assets from new investors amid dwindling foreign interest in Chinese markets.
PivotalPath data shows that there are still a relatively small number of practitioners as global interest in the country’s stocks has waned due to the lasting bear market. “Among the roughly 600 equity long-short funds globally with assets of at least $50 million and a minimum track record of 18 months, only 35 focus exclusively on China.”
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