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Chinese And L/S Hedge funds Stand Out In 2015

Chinese hedge funds continue to be strong hedge fund performers year to date despite going on a roller coaster ride up and down recently, while the real standout category in the most recent HSBC Holdings plc (ADR) (NYSE:HSBC) (LON:HSBA) Hedge Weekly performance review are the long short Hedge Funds, who have some interesting geographic proclivities to note.

But the most interesting dichotomy could be in the geographic success of various long short hedge funds year to date. The sample size of hedge funds reporting positive performance across four primary geographic regions gives this angle a degree of gravitas.

Consider hedge fund strategy and geographic categories

Examining the broad categories as designated in the HSBC Weekly Report, certain trends stand out. The first is the relative resiliency of Asian focused hedge funds. They have faced an onslaught from a negative market environment – the Shanghai Composite index fell 33 percent, finding a mathematical support level at 3,507 in just one month. But yet in the face of it all, Chinese based-hedge funds remain in the top 20 of HSBC’s weekly performance listing.

The HSBC Equity Diversified/Asia fund category is up 9.63 percent year to date, tied with the notable equity long short healthcare category. In fact, Bio-tech / Pharma is the hot category, up 20.78 percent year to date and its lead hedge fund is leading the HSBC overall performance list. (ValueWalk had previously identified tradeable information by noting the growing supply of firms looking to make acquisitions in the biotech / pharma category.)

Long / Short Strategies have statistical heft in relative reporting size and performance

Long / short hedge funds strategies include a fair number of funds making the performance representative of a market environment treating a particular relative value strategy well. Many of the long short geographic sub-categories are all averaging near 7 or 8 percent year to date returns. European, Asian and Global strategies are up strongly. Some relative laggards exist, but are nonetheless positive on the year. The Russia equity diversified long short category is up just 2.31 percent, while similar strategies in the UK are up 5.70 percent year to date. The U.S. is the real laggard in this regard, up...