Classic Hedge Fund Trade Is a Winner in China’s Two-Speed Market
- Long-short strategy has gained over 10% in China this year
- China’s low correlation, high dispersion generates alpha: BNP
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Chinese stocks have been among the world’s worst performers over the past year, but they are beating their major peers based on one hedge-fund strategy.
Investing in Chinese equities using the classic long-short trade returned more than 10% through late June this year, according to data compiled by Goldman Sachs Group Inc. That compares with gains of about 7% in the US, and less than 6% in Europe, the data show.