China Hedge Funds Add $200 Billion, Trouncing Wall Street
- Local funds returned average 30% last year vs 12% globally
- Outperformance is another impediment to foreign firms in China
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China’s army of tiny hedge funds are pulling further ahead of their better-known foreign competitors with outsized gains helping them attract more assets.
The nearly 15,000 funds offered by Chinese managers returned 30% on average last year, with the best-performers surging 10-fold, according to Shenzhen PaiPaiWang Investment & Management Co. That dwarfs the average 12% gain for hedge funds globally.