Top China Hedge Fund Bucks Losses With Bets on Consumer Stocks

  • Lygh China fund up 12.6% this year as Shanghai Comp drops 15%
  • Picks include Red Star Macalline, Best Pacific, Nine Dragons

Investors stand at trading terminals at a securities exchange house in Shanghai.

Photographer: Qilai Shen/Bloomberg
Lock
This article is for subscribers only.

Bets on consumer-related stocks and high-end manufacturers have helped Grace Lu vault to the top ranks of China-focused hedge fund managers this year, bucking industry-wide losses.

Lu, who runs the $85 million GH China Century Fund at Singapore-based Lygh Capital Pte., said she is up 12.6 percent this year through August. That’s the second-best performance among China-focused long-short equity funds, according to Eurekahedge Pte. Funds investing in China lost 1.6 percent through August, Eurekahedge said in a report Tuesday, as the Shanghai Composite Index has fallen 15 percent this year.