The credit market in Asia also improved, with the L&R Asia Credit Alpha Fund returning 25% by actively trading credit across the region. Sentiment in the high-yield dollar bond market rebounded, aided by company buybacks and bond redemptions. Despite the positive performance, some fund managers expressed caution about the sustainability of US market outperformance, citing high valuations and bullish sentiment. FengHe Fund Management, while adding Chinese stocks, emphasized a focus on fundamental research and valuation-based risk-reward profiles.
Key takeaways:
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- Asia hedge funds rebounded in 2024, posting double-digit gains as China stocks recovered and Japan's equity rally hit new heights.
- Equity funds managed by Aspex Management, Panview Capital, and CloudAlpha Capital were among those that returned more than 35% in 2024, driven by AI-related and technology bets.
- Panview's biggest bullish position was in AppLovin Corp, which saw its shares jump over 700% last year.
- RAYS Capital Partners' Asian Technology Absolute Return Fund returned 80%, benefiting from the AI boom and investments in companies like Credo Technology Group and Nvidia Corp.