APS China Hedge Fund Posted Loss Last Month as Rout Continued

  • APS's $2 billion long-only strategy slumped 6.7% in September
  • Shanghai Composite declined 4.8% to cap quarterly decline

APS Asset Management Pte’s China A Share Fund lost 6.7 percent last month as the slump in Chinese stocks culminated in the market’s worst quarterly decline in more than seven years.

The returns of the long-only equity fund were calculated through Sept. 25, Singapore-based APS said in an e-mailed statement, a period during which the Shanghai Composite Index declined 3.5 percent. Since the beginning of the year, the fund advanced 3.1 percent, according to the statement, compared with a 4.4 percent decline in the index. APS did not elaborate on the trades or positions of the fund and related strategies, which have about $2 billion in assets.

Hedge funds investing in China are on track to report their fourth monthly loss in a row in September as stock markets extended their rout, according to the Singapore-based data provider Eurekahedge Pte. The Eurekahedge Greater China Hedge Fund Index declined 6.6 percent in August, cutting the gain for the first eight months of 2015 to 3 percent, according to the data provider, which has not yet reported numbers for September.

The Shanghai benchmark index tumbled almost 29 percent in the three months ended Sept. 30 as concerns about the world’s second-largest economy intensified, the worst quarterly decline since the first three months of 2008. The rout has spurred losses for long-only managers and has prompted the nation’s regulators to scrutinize practices they deem harmful to the markets, such as short-selling shares.

Long-Short Fund

APS’s Greater China Long/Short Fund declined 2.9 percent in the month through Sep. 25, the asset management firm said. The fund, with $79 million of assets, was still up 24 percent since the beginning of the year through Sept. 25. The APS Asia-Pacific Long/Short Fund, with $305 million of assets, rose 1.1 percent in the month and 19 percent since the beginning of the year.

Founded in 1995, APS manages money for institutional investors such as pension funds, endowments, foundations, family offices, funds of funds, and sovereign wealth funds, according to Wong Kok Hoi, founder and chief investment officer. More than half of the investors are based in North America, with the remainder evenly split between Asia, Europe and Australia, Wong said in April.

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