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bloomberg quoted unnamed people familiar with the matter as saying that triata capital china fund soared 44% last month, bluecreek china fund returned 31%, and yunqi capital china fund jumped 26%. some funds have recouped losses from earlier this year. the msci china index rose 23% in september, its largest gain since november 2022.

according to eurekahedge pte data, with the strong rebound of a-shares, hedge funds focusing on the chinese market finally got the long-awaited opportunity.

billionaire investor david tepper said he was buying "everything" related to china, as hedge funds piled into a-shares at a record pace. the first wave of the rally benefited hedge funds whose bullish positions on chinese stocks far outweighed their bearish positions. there is optimism that shrewd stock picking could deliver market-beating returns.

goldman sachs' hedge fund clients' net purchases of chinese stocks in a single week reached the highest level since the bank's prime broker business statistics began in 2016.

nicolas amstutz, a partner at lotus peak capital in singapore, said, "we believe that china's future environment is conducive to an investment strategy focused on alpha."

triat, led by sean ho, manages approximately $770 million in assets. the fund has spent the past two years buying stock funds it believes have strong fundamentals, high revenue and profit growth, attractive buyback and dividend policies, and large amounts of cash but low valuations, according to a person familiar with the fund.

the fund benefited from strong gains in stocks related to artificial intelligence software and data centers in the second half of september.

another person familiar with the matter said that yunqi capital, founded by chris wang, bought a large number of u.s.-listed chinese concept stocks that were sold off in large quantities in the early stage. lufax has surged 62% in the u.s. market since september 20, and qifu technology has surged 20% in the same period.

representatives for triata and yunqi capital declined to comment.

the rise in a-shares wiped out the earlier losses of bluecreek china fund, which has risen by 15% this year. founder joseph zhang xiaogang said that this us$133 million hedge fund has been optimistic about the chinese market in the past year and plans to continue to invest fully.

"the valuation of the chinese market is still very cheap," zhang said. "the negative bias against china and its economy is too deep, and it will take some time for global investors to change their bias." he predicted that the chinese government still has many measures to support the economy in its toolbox.

bloomberg quoted another person familiar with the matter as saying that another hedge fund, guanyin greater china fund, achieved a return rate of nearly 12% in september, and the cumulative increase this year expanded to 18%.

but not everyone has achieved impressive returns. people familiar with the matter said that the wt china fund, which strictly maintains a balance of long and short positions, rose 1.7% in september. the cumulative return this year is 21%.

baoyin greater china fund and wt china fund did not respond to emails seeking comment.

zhao chen, chief global strategist at investment research firm alpine macro, said that although there is no guarantee that improved profits and cheap valuations will definitely lead to outstanding performance in the chinese stock market, buying chinese stocks may be a value investment in the long run.