How One Hedge Fund Ignored the China Bears and Made a 65% Gain
- Fund made money buying AAC shares after short-seller attack
- It also owns share in Chinese developers Evergrande, Sunac
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Betting against the short-sellers helped Gloria Lu’s fledgling hedge fund establish itself among Asia’s biggest stars of 2017.
Parantoux Capital’s fund, which manages about $55 million, returned 65 percent this year through September on investments including hardware company AAC Technologies Holdings Inc., which plunged in the wake of a short-seller report in May, said Lu, a Hong Kong-based founding partner. Going long on property developers China Evergrande Group and Sunac China Holdings Ltd. -- whose shares have soared sixfold this year -- also paid off for the fund, which wagers on rising and falling stocks globally.