Star China Funds Turn to Duds in 2024 as Stocks Rout Gets Ugly
- Funds focusing on small caps, niche plays have taken a hit
- A gauge of actively managed stock funds is down 16% this year
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Some onshore funds that weathered the Chinese stock rout last year are losing their shine, as recent losses highlight the challenges of investing in the $8 trillion market where trends can swiftly reverse.
The Goldstate Capital Principal Guaranteed Mixed Fund, which defied the decline in the mainland benchmark CSI 300 Index with a near 29% return in 2023, has fallen 32% so far this year. Most of its holdings are small-cap stocks, which as a category have suffered steep losses lately.